Gold prices on MCX traded higher on June 15 amid a rally in global bullion prices after the US-Iran reached an agreement to end their war, pushing oil prices lower and easing inflation concerns. Gold’s August futures rose 1.74% to Rs. 1,53,147 per 10 grams. Silver July futures advanced 2.31% to Rs. 2,51,878 per kg. Meanwhile, Brent crude futures rose 4.55% to $83.36 a barrel. US West Texas Intermediate (WTI) gained 5.03% to $80.61 a barrel.
According to the CME FedWatch tool, markets have scaled back expectations for a US rate hike in December to 48% after the peace deal, down from 69% last week
24K gold rose by Rs. 245 to Rs. 1,51,530 per 10 grams, while 22K gold advanced Rs. 225 to Rs. 1,38,900. City-wise, Mumbai and Kolkata mirrored prices at Rs. 1,51,530, while Delhi was at Rs. 1,51,680, and Chennai at Rs. 1,53,490.
Gold rose 2% on Monday after US and Iranian officials said they had reached a preliminary deal to end their conflict. Spot gold was up 2% at $4,304.11 per ounce. US gold futures for August delivery rose 2% to $4,325.20.
The agreement will be officially signed on Friday in Switzerland, Pakistani Prime Minister Shehbaz Sharif said in a post on X. The US dollar fell to a 10-day low, making greenback-priced bullion cheaper for holders of other currencies.
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"Lower oil prices and a softer dollar, stemming from reduced geopolitical risk and the anticipated reopening of the Strait of Hormuz, are helping to calm inflation expectations," said Tim Waterer, chief market analyst at KCM Trade.
"This combination is providing the precious metal with its best tailwind in recent weeks, though sustainability will depend on how durable the peace agreement proves to be."
MCX gold price may face resistance at Rs. 1,53,600 level, while support is seen at Rs. 1,52,500. Resistance for the silver price is placed at the Rs. 2,53,000 level, with support at Rs. 2,48,000.