Gold Prices Hit Seven-Week High Amid Safe-Haven Demand

Gold prices reached a seven-week high on Thursday due to increased safe-haven demand, offsetting hopes of a US-Iran agreement that could ease geopolitical tensions in West Asia.

The Multi Commodity Exchange (MCX) saw gold futures climb by Rs 536 to Rs 1,49,029 per 10 grams and touch an intraday high of Rs 1,49,700 - an increase of 0.81% or Rs 1,207 by 12:10 pm.

Despite reports that the Strait of Hormuz could reopen and US President Donald Trump's comments indicating a desire to reach an agreement with Iran, investors remained cautious due to reduced concerns over inflation and near-term US monetary tightening, which put pressure on US Treasury yields.

Market experts stated that expectations of lower crude oil prices following easing tensions in the region reduced concerns over inflation and near-term US monetary tightening, putting pressure on US Treasury yields.