Gold Hits Seven-Week High As Safe-Haven Demand Counters Hopes Of US-Iran Deal

Gold prices climbed to a seven-week high on Thursday as falling US Treasury yields boosted safe-haven demand, offsetting optimism over a possible US-Iran agreement that could ease geopolitical tensions in West Asia.

On the Multi Commodity Exchange (MCX), gold futures for October 5 rose above ₹1.49 lakh per 10 grams, while silver traded mixed after early gains.

Gold Rises Above ₹1.49 Lakh On MCX

MCX gold futures (October 5) opened 0.36%, or ₹536, higher at ₹1,49,029 per 10 grams.

The contract later touched an intraday high of ₹1,49,700, up 0.81%, or ₹1,207, from the previous close by 12.10 pm.

In the international market, COMEX gold was trading 0.36% higher at $4,320 per ounce.

Silver Trades Mixed After Early Gains

MCX silver futures (September 4) gained in early trade, touching an intraday high of ₹2,28,397 per kg, up 0.35%, or ₹813, from the previous close of ₹2,27,584.

However, the contract later pared gains and was trading at ₹2,26,580, down 0.44%, or ₹1,004.

COMEX silver was trading 0.12% higher at $62.36 per ounce.

Lower Treasury Yields Support Bullion

The rally in gold came despite reports suggesting the Strait of Hormuz could reopen and comments by US President Donald Trump indicating that Washington was seeking to reach an agreement with Iran.

Market experts said expectations that easing tensions in West Asia could lower crude oil prices have reduced inflation concerns and expectations of near-term US monetary tightening, putting pressure on US Treasury yields and supporting gold prices.

Key Levels To Watch For Gold

According to analysts, immediate resistance for MCX gold is in the ₹1,50,000–₹1,50,700 range.

A sustained break above these levels could push prices towards ₹1,52,200–₹1,52,800.

Immediate support is placed at ₹1,48,600–₹1,48,000, followed by ₹1,46,600–₹1,46,000.

Analysts noted that gold has broken above its 20-, 50-, 100- and 200-day exponential moving averages (EMAs), indicating strengthening near-term momentum after weeks of consolidation.

They said the bullish trend could continue as long as prices remain above ₹1,49,000, while a fall below that level could indicate exhaustion following the recent rally.

Silver Outlook

For silver, analysts said a sustained move above ₹2,29,000 could pave the way towards the ₹2,31,500–₹2,32,500 zone.

Immediate support is seen at ₹2,25,000–₹2,24,000, with the next support at ₹2,22,000–₹2,21,000.

They added that silver is holding above its 20-day and 200-day EMAs, while the Relative Strength Index (RSI) has edged up to 54, indicating improving momentum. A decisive close above the 50-day EMA would strengthen the bullish outlook.

Crude Oil Extends Losses

Meanwhile, Brent crude, the global oil benchmark, fell 0.51% to trade below $80 a barrel.

US West Texas Intermediate (WTI) crude also declined nearly 1% to trade below $75 a barrel.