Gold Futures Slump Over 2 PC Amid Weak Global Cues, US-Iran Deal Uncertainty

New Delhi: Gold futures slumped Rs 3,392 to Rs 1.45 lakh per 10 grams on Friday, tracking weak global trends amid uncertainty over the implementation of a US-Iran peace agreement, which eroded demand for the precious metals.

On the Multi Commodity Exchange, the yellow metal for August delivery extended their losses for the second straight session, declining Rs 3,392, or 2.27 per cent, to Rs 1,45,917 per 10 grams in a business turnover of 9,099 lots.

Analysts said the initial optimism over the US-Iran peace agreement faded after high-level talks scheduled in Switzerland were called off, raising doubts over the implementation of measures aimed at ending hostilities and restoring oil flows through the Strait of Hormuz.

Switzerland’s foreign ministry said talks scheduled for Friday to discuss the next phase of the agreement “have been postponed for the time being”.

According to reports, US Vice-President JD Vance had postponed a planned visit, while Iran’s participation in discussions also remained uncertain.

These developments have left investors unconvinced that the peace process will be implemented smoothly, analysts said.

Gold prices faced downward pressure on Friday amid a stronger US dollar, which has contributed to this decline, Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

In the global markets, Comex gold futures for August contract declined USD 95, or 2.24 per cent, at USD 4,150.90 per ounce in New York.

The precious metal also remained under pressure from the Federal Reserve’s latest policy meeting which reinforced expectations that interest rates may remain elevated for an extended period.

The Federal Reserve kept its interest rates unchanged on Wednesday, however, policymakers signalled limited urgency to ease monetary policy, supporting the US dollar and Treasury bond yields.

Analysts noted that geopolitical uncertainty persisted after Israel conducted fresh strikes in Lebanon, despite the broader framework of the US-Iran agreement.

Bullion prices are likely to remain volatile as investors assess developments in West Asia and the outlook for global interest rates and economic growth, they added.

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