Spot gold up by INR 3,000/10 gm; market senses lowering of war escalation risk
This story was originally published at 16:08 IST on 6 May 2026
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By Abhijit Doshi
MUMBAI – Prices of gold in the spot market opened higher Wednesday, tracking the rise in futures contracts on the Multi Commodity Exchange of India and COMEX.
Gold of 99.9% purity opened at INR 150,636 per 10 grams, up from Tuesday's closing price of INR 147,636 per 10 grams. Traders were offering a discount of INR 2,500 per 10 grams, sources said.
The price of gold rose as the market sensed an easing of the risk of escalation in the US-Iran war. This followed US President Donald Trump's statement late Tuesday that he was pausing the effort to guide stranded vessels out of the Strait of Hormuz to allow time for a deal to end the war with Iran. However, he also said American forces' blockade of Iranian ports would continue.
An end to the war and a reopening of the Strait of Hormuz would lower inflation risk and reduce the chance of the US Federal Reserve raising interest rates, thereby supporting non-yielding gold, market sources said.
"For gold, the next driver will be the outlook for interest rates, with U.S. Treasury borrowing plans and key economic data likely to shape expectations for Fed policy," Dow Jones said, quoting an ING report. End
Edited by Rajeev Pai
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