Spot gold opens higher on US-Iran geopolitical tension, US rate cut hope
This story was originally published at 14:16 IST on 11 February 2026
Register to read our real-time news.Informist, Wednesday, Feb. 11, 2026
MUMBAI – Spot gold opened higher Wednesday, tracking futures contracts on the Multi Commodity Exchange of India and the COMEX. Prices rose due to geopolitical tensions between the US and Iran, which continued to support the safe-haven appeal of gold. Growing expectations of a rate cut by the US Federal Reserve also supported prices.
In Mumbai, the spot price of gold of 99.9% purity was INR 156,113 per 10 grams, up from INR 155,700 per 10 grams on Tuesday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association. There was little premium or discount at this level of price, Jain said.
US President Donald Trump has continued to threaten Iran with possible military attacks if Tehran does not accede to his demands on issues ranging from nuclear enrichment to ballistic missiles, Al Jazeera reported. Trump hinted at aggressive actions if Iran does not agree for a deal. In comments to the Israeli outlet Channel 12, published on Tuesday, he said: "Either we reach a deal, or we'll have to do something very tough."
Prices were also supported by a rise in expectations of a rate cut by the US Federal Reserve. Data released overnight showed US retail sales were unexpectedly unchanged in December as households scaled back spending on motor vehicles and other big-ticket items, potentially setting consumer spending and the economy on a slower growth path, Reuters reported. Market participants expect at least two 25-basis-point rate cuts in 2026, with the first one expected in June. Typically, gold performs well in a low-interest-rate environment as it is a non-interest-yielding asset.
Market participants await the non-farm payrolls report for January, due later in the day, and inflation data due Friday, for more cues on the Fed's monetary policy path. End
Reported by Reshma Ravi
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
