Gold Prices Edge Higher Amid US-Iran Tension and PM Modi’s Appeal

The Indian bullion market saw a slight surge in gold prices this Monday, driven by a combination of domestic policy appeals and international geopolitical friction. Prime Minister Narendra Modi, addressing a public gathering in Hyderabad, made a formal request to the nation to avoid buying gold for the next twelve months. He argued that such a move would help the country preserve its foreign exchange and better manage the economic pressures arising from the US-Iran conflict and fluctuating oil prices.

Currently, 24-carat gold prices in India are settled at Rs 15,398 per gram. For those looking at 22-carat gold, the price is Rs 14,115 per gram, marking a steady rise from Sunday’s closing rates. The price of 18-carat gold stands at Rs 11,549 per gram. In cities like Delhi and Ahmedabad, prices hovered slightly above the national average, at Rs 15,413 and Rs 15,403 respectively, while Chennai remains the most expensive city for gold buyers at Rs 15,633 for 24-carat.

Global factors are playing a massive role in this price movement. The rejection of peace proposals between the US and Iran has kept the Strait of Hormuz—a vital shipping lane—under a cloud of uncertainty. This has led to a ‘wait and watch’ approach among large-scale investors. Furthermore, the upcoming US inflation data is keeping the markets on high alert. If the inflation figures come in higher than expected, it could lead to a stronger dollar, potentially putting downward pressure on gold, though geopolitical risks continue to provide a floor for the precious metal’s price.