Gold Price Today: The yellow metal on MCX opened today after President Donald Trump expressed optimism that the US and Iran could agree a permanent ceasefire.
At 9 am on Friday, the MCX gold May futures contract rose marginally by 0.04 % to Rs 1,51,820 per 10 grams, while the MCX silver May futures was up 0.51% at Rs 2,49, 893 per kg.
In the global market, the bullion is headed for a fourth weekly gain after President Donald Trump expressed the possibility that the US and Iran could agree a permanent ceasefire to end the war that has rattled global markets and raised fears of inflation. Gold remained steady at $4,795 an ounce in early trading, having added nearly 1% this week, Bloomberg reported.
On Thursday, Trump said that Iran has agreed to the terms it had earlier resisted, including the reopening of Strait of Hormuz. However, some European and Gulf Arab leaders predicted that a US-Iran peace deal could take about six months to be finalised.
The US President also announced that Israel and Lebanon had agreed to a 10-day ceasefire, which was later confirmed by Prime Minister of Israel Benjamin Netanyahu. But control over Hormuz, the key coonectivity point that links the Persian Gulf to global markets, remains uncertain, with a US naval blockade still in place and Iran pressing ahead with plans to charge ships for transit even after the war is over, the report said.
Eventhough gold has recovered some losses in recent weeks, the precious metal has still lost around 9% since the war began by the end of February, with a liquidity squeeze in the initial days of the conflict as investors offloaded holdings to cover losses elsewhere. The disruption to energy supplies may last even after the conflict ends, keeping the inflation risk high, as strikes have damaged key oil and gas infrastructure in the Middle East.
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