Gold Prices Rise Amid Ongoing Tensions Between US and Iran
The price of gold in India's retail market rose on August 5 amid ongoing tensions between the US and Iran. The Strait of Hormuz remained open to commercial vessels, according to the US military, which led to a decline in oil prices.
The US Treasury Secretary Scott Bessent stated that an Iran deal is close, indicating a potential agreement to open the Strait of Hormuz as early as this week. This development caused Brent crude to fall by over 1% to trade near $78 per barrel.
The dollar index declined by about 0.10%, making greenback-denominated bullion slightly cheaper for buyers in other currencies. As a result, both 24-karat and 22-karat gold rates increased marginally across major Indian cities.
In the domestic bullion market, MCX gold rate on August 5 was trading 0.71% higher at ₹145,310 per 10 grams, while MCX silver futures were up by about 1.08% at ₹224,520 per kg.