Spot gold up on Fed rate cut hopes, geopolitical tensions between US, Iran
This story was originally published at 14:32 IST on 16 February 2026
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MUMBAI – Spot gold prices rose Monday due to expectations of a rate cut by the US Federal Reserve. Ongoing geopolitical uncertainty between the US and Iran has also supported gold prices.
In Mumbai, the spot price of gold of 99.9% purity was INR 154,080 per 10 grams, up from INR 152,751 per 10 grams on Friday, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.
"...softer than expected inflation data from US reinforced expectation that US Federal Reserve would deliver at least two rate cuts in 2026," ICICI Direct said. According to the Labor Department's Bureau of Labor Statistics, the US Consumer Price Index increased 0.2% in January, following an unchanged 0.3% rise in December. Economists surveyed by Reuters had predicted that CPI would rise 0.3% in January.
Prices rose due to geopolitical uncertainty as the market awaits the talks between the US and Iran, scheduled for Tuesday. Iran is ready to consider compromises to reach a nuclear deal with the US if Americans are willing to discuss lifting sanctions, the BBC reported, quoting an Iranian minister. US officials have repeatedly emphasised that Iran, not the US, is holding up progress in this protracted negotiating process, the report said.
Reuters reported Saturday, quoting two US officials, that the US military is preparing for the possibility of sustained, week-long operations against Iran if President Donald Trump orders an attack, in what comes to become a far more serious conflict between the countries than previously expected.
Meanwhile, dealers are charging a discount of INR 1,700 per 10 grams on spot gold prices, Nitin Kedia, national general secretary of All India Jewellers & Goldsmith Federation, said. Spot gold demand is very low despite dealers charging discounts as market participants are expecting a sharp correction in prices, Kedia said. End
Reported by Reshma Ravi
Edited by Tanima Banerjee
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