Gold Prices Soar Amid US-Iran Tensions and Rising Crude Oil Costs

Gold prices surged on a weekly basis due to escalating tensions between the US and Iran. The conflict prompted investors to seek safe-haven assets, causing gold and silver prices to rise.

The price of 10 grams of 24-carat gold reached Rs 1,43,781 on Friday, up from Rs 1,41,915 at market opening on Monday, according to the India Bullion and Jewellers Association (IBJA). Gold futures also gained 0.17% on MCX, while silver September futures advanced 1.33%.

Renewed US-Iran tensions and attacks on tankers in the Red Sea sent crude prices sharply higher, causing risk premiums for precious metals to rise. However, gold and silver entered a range-bound pattern later in the week as energy shock rekindled inflation fears, lifting US Treasury yields and strengthening the dollar.

Investors are now looking forward to the Federal Reserve's policy meeting on July 28-29 for cues on the direction of commodity markets. The meeting is expected to provide insight into the Fed's stance on interest rates and its impact on commodity prices.