Gold Prices Rise on MCX as Global Tensions Ease, Fed Decision Looms

Gold and silver prices on the Multi Commodity Exchange (MCX) have risen due to easing global tensions, a weaker US dollar, and lower bond yields. The move comes after signs of de-escalation in the conflict between the US and Iran eased concerns over supply disruptions and inflation.

The pause in military action has reduced immediate geopolitical risks, sending crude oil prices sharply lower. Softer oil prices have, in turn, eased concerns over inflation, while a weaker US dollar and lower Treasury yields have improved the appeal of non-yielding assets such as gold and silver.

According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, gold is receiving support from the weaker dollar and easing geopolitical tensions. However, gains have remained measured as investors await the US Federal Reserve's policy decision later this week.