Gold Prices Rally to One-Month High in Delhi on US-Iran Optimism and Fed Rate Hike Concerns

Gold prices in Delhi rose sharply to a one-month high on Wednesday, fueled by global market trends and reduced expectations of monetary tightening by the Federal Reserve.

The price of gold with 99.9 per cent purity surged by Rs 2,500, or 1.7 per cent, to Rs 1,50,000 per 10 grams from Tuesday's closing level of Rs 1,47,500 per 10 grams, according to the All India Sarafa Association.

Silver also rebounded strongly after remaining flat in the previous session, rising by Rs 6,200 to almost a one-month high of Rs 2,32,700 per kilogram (inclusive of all taxes).

The sharp increase in gold prices comes as global spot gold gained USD 85.28, or 2.09 per cent, to USD 4,162.76 per ounce.

Analysts attributed the rise to growing optimism over a potential US-Iran agreement to reopen the Strait of Hormuz and reduced concerns over energy-driven inflation and interest rate hikes by the Federal Reserve.