Spot gold opens higher on hope of peace deal between US, Iran
This story was originally published at 16:16 IST on 7 May 2026
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By Taniva Singha Roy
MUMBAI – Gold prices opened higher in the spot market Thursday, tracking futures contracts on the Multi Commodity Exchange of India and the COMEX, on hopes of a deal between the US and Iran to end the war in West Asia. If the two sides agree to a deal, easing concerns about price pressures could convince the US Federal Reserve to cut interest rates rather than keep policy restrictive for longer, according to FX Street.
In Mumbai, gold of 99.9% purity opened at INR 151,237 per 10 grams, up from Wednesday's closing price of INR 150,860 per 10 grams, according to data from the India Bullion and Jewellers Association Ltd. Traders were offering a discount of INR 2,700 per 10 grams. "Owing to easing military tensions between US and Iran, prices rose," said Nitin Kedia, national general secretary of the All-India Jewellers & Goldsmith Federation.
The White House is close to finalising a memorandum with Iran that could include enhanced UN inspections, restrictions on uranium enrichment for 12–15 years, and gradual sanctions relief in exchange for curbing Iran's nuclear activities, according to Kedia advisory. "The potential easing of geopolitical tensions reduced concerns over prolonged energy-driven inflation pressures, helping gold recover after facing significant selling pressure during the conflict period," analysts at Kedia advisory said.
"Falling oil prices and easing inflation concerns pushed bond yields and the dollar lower, supporting gold prices," MUFG's Soojin Kim was quoted as saying by Dow Jones.
Meanwhile, gold demand in India remained subdued due to volatile international prices, Amit Gupta, analyst at Kedia Advisory, said in a note. End
Edited by Avishek Dutta
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