India's Gold Prices Soar on Iran-US Peace Hopes, Weaker Dollar
Gold prices rose significantly in India over two days due to hopes of a peace deal between Iran and the US. The MCX gold futures for October 2026 delivery gained Rs 1,378 to Rs 1,45,677 per 10 grams. Similarly, silver prices jumped Rs 3,495 at Rs 2,25,110 per kg in the same period.
The gains were partly due to a decline in oil prices, which eased inflation concerns and reduced expectations of higher interest rates. The U.S. dollar also remained under pressure, making dollar-denominated precious metals more affordable for buyers using other currencies.
According to traders, the probability of a Federal Reserve interest rate hike at the September 15-16 policy meeting has decreased to 59%, down from 67% the previous day. Gold's appeal is typically reduced when interest rates are expected to remain higher.