Gold Surges to 5-Month High Amid US-Iran Tensions and Inflation Fears

Gold prices surged to a five-month high in India's national capital on Monday, driven by escalating US-Iran tensions and inflation fears. The precious metal rose to Rs 1,64,400 per 10 grams (inclusive of all taxes), up from Friday's closing level of Rs 1,63,500 per 10 grams.

The price hike was also fueled by a weaker US dollar and strong safe-haven demand for gold. Silver prices also advanced for the third straight session, rising to over a four-month high of Rs 2,53,500 per kilogram (inclusive of all taxes).

Analysts are now looking at inflation as a key driver for bullion prices, rather than geopolitics. The Federal Reserve's response to higher oil rates amid the Iran escalation will be closely watched, particularly whether the price shock is seen as temporary or as a broader inflation risk.