Spot gold down tracking losses in futures, easing US-Iran tensions
This story was originally published at 14:21 IST on 5 February 2026
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MUMBAI – Spot gold prices fell Thursday, tracking futures contracts on the Multi Commodity Exchange of India and COMEX. Futures prices fell as easing geopolitical uncertainty between the US and Iran dented safe-haven demand for gold, analysts said. Gold also fell on fading expectations of a rate cut by the US Federal Reserve amid hawkish commentary by Fed Governor Lisa Cook.
In the Mumbai spot market, the price of gold of 99.9% purity was INR 153,012 per 10 grams, down from INR 158,158 per 10 grams Wednesday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association. Dealers are charging a premium of INR 2,000 per 10 grams on gold prices, Jain said.
The US and Iran have agreed to hold nuclear talks in Oman Friday, despite differences about the agenda, amid heightened tensions as the US builds up military presence in West Asia, Reuters reported. "...demand for safe haven may decline amid ease in geopolitical tension in the Middle East (West Asia) following US and Iran agreeing to hold talks in Oman despite differences about the agenda," ICICI Direct said in a report.
Meanwhile, Fed Governor Cook emphasised that persistent upside inflation risks outweigh signs of the labour market cooling, signalling limited appetite for a near-term rate cut, Kedia Advisory said in a note. "Additionally, hopes for aggressive interest rate cut by US Federal Reserve started fading after US President Donald Trump named former Fed Governor Kevin Warsh as his choice to succeed Jerome Powell as Fed Chair," ICICI said. Typically, higher interest rates dent demand for non-interest-yielding precious metals. End
Reported by Reshma Ravi
Edited by Rajeev Pai
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