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Informist, Monday, Jun. 1, 2026

 

By Reshma Ravi

MUMBAI – Futures contracts of gold on the Multi Commodity Exchange of India and COMEX fell Monday as renewed US-Iran tensions pushed oil prices higher, fuelling fears of inflation and reinforcing the higher-for-longer interest rate outlook, analysts said. Hawkish remarks by US Federal Reserve officials also weighed on gold prices, analysts added. 

 

At 1620 IST, the most active August contract of GOLD was down 0.8% at INR 159,665 per 10 grams on the MCX. The same-month contract on COMEX was down 1.2% at $4,536.2 per ounce. The most active July SILVER contract on the MCX was up 0.2% at INR 267,583 per kilogram. The same-month contract on COMEX was up 0.4% at $76.15 per ounce.

 

The US said it struck Iranian military sites over the weekend and Iran's Revolutionary Guards on Monday said it had targeted a US base in response, the latest exchange of attacks amid negotiations to end the three-month-old war. Brent crude oil prices rose more than 3?ter the latest strikes, which weighed on gold prices, Manoj Jain, director of Prithvi Finmart, said. Higher oil prices can accelerate inflation and keep interest rates higher for longer. While gold is traditionally seen as a hedge against inflation, it loses its appeal in a high-interest-rate environment as a non-yielding asset.

 

Prices also came under pressure amid uncertainty surrounding the US-Iran peace agreement. Market participants cautiously awaited US President Donald Trump's approval of a proposed deal to extend the ceasefire with Iran, Jain said. On Friday, Trump had said he would soon decide on a proposed deal to extend the ceasefire with Iran, though the two countries still appeared to differ on significant issues that have been central to the conflict, Reuters reported. "The major disagreements between the two sides remain unresolved and military frictions near the strait are stoking geopolitical risk premiums in markets," Dow Jones qutoted Guoxin Futures analysts as saying.

 

Hawkish remarks by US Federal Reserve officials also weighed on gold prices, analysts at Kedia Advisory said. Fed Vice Chair for Supervision Michelle Bowman said on Friday that the impact of the West Asia war on the economy, while still being measured, could lead to a persistent rise in inflation that might require tighter monetary policy. Federal Reserve Bank of Philadelphia President Anna Paulson said on Friday that "mildly restrictive" monetary policy was "well positioned" for an uncertain outlook where inflation pressures remained too high.

 

Outlook for the rest of the session:

--MCX gold seen at INR 157,500–INR 161,500 per 10 grams

--COMEX gold seen at $4,480–$4,580 an ounce

--MCX silver seen at INR 263,500-INR 271,500 per kg

--COMEX silver seen at $72.00-$80.00 an ounce

 

End

 

US$1 = INR 94.99

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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