Gold Defies Easing US-Iran Tensions as Investors Await Fed Decision

Despite easing tensions in the US-Iran conflict, gold prices have remained firm. The international spot price of gold is up 0.36% to $4,085.40 per ounce, while silver has risen by 0.38% to $59.13 per ounce on Comex.

The strengthening rupee has capped gains in domestic MCX Gold, but the metal has still gained around 50% to trade near Rs 1,43,675 per 10 grams. The domestic MCX gold futures for the August contract have risen by 0.42% to Rs 1,43,702 per 10 grams.

Commodity experts believe that gold and silver will remain highly reactive to news in the coming weeks, with the Fed's policy decision next week being a key driver of prices. A softer tone from the Fed or fresh conflict in the Gulf could bring safe-haven buying back, but if the dollar and yields keep rising alongside hawkish Fed comments, prices may stay stuck in a narrow range.