Weekly Gold Rally Stalls as US-Iran Talks Advance

Mumbai witnessed a tug-of-war in bullion this week as geopolitical risks battled improving diplomatic signals. Gold futures on MCX ended with a slim 0.19 percent advance despite Friday’s 0.06 percent retreat in the June contract. Silver followed a similar path, closing 0.09 percent lower. Benchmark 10-gram 999 gold moved from Rs 1,57,821 at Monday’s open to Rs 1,58,117 by Friday. Dealers said Comex gold hovering around $4,535 and a stronger rupee capped upside momentum. Positive headlines on US-Iran negotiations eased immediate safe-haven buying, but uncertainty over the Hormuz chokepoint kept traders wary. Meanwhile, the World Gold Council warned that the steep hike in import duty to fifteen percent could slash Indian gold demand by up to ten percent next year. Bond-market watchers pointed to the 30-year Treasury yield above five percent as a headwind for precious metals. With the Federal Reserve potentially extending its rate-hike cycle into late 2026, analysts expect near-term pressure on both gold and silver unless fresh geopolitical shocks emerge.