Gold Prices Soar on Weaker Dollar, Geopolitical Tensions

Gold prices surged by 1.02% to settle at ₹143,232 as a weaker US dollar boosted support for the metal.

The Federal Reserve kept interest rates unchanged at 3.50%-3.75%, with Chair Kevin Warsh reiterating the central bank's commitment to controlling inflation.

Renewed military action between the United States and Iran heightened safe-haven demand, leading to increased gold purchases as investors sought protection from geopolitical uncertainty.

However, expectations of elevated interest rates continue to limit upside momentum for gold prices, with markets pricing in a 65% probability of a September rate hike.