Gold Rebounds Above ₹1.50 Lakh as US-Iran Deal Hopes Surge Amid Fed Meeting Focus
Global Bullion Rally Driven by Geopolitical De-escalation
Gold prices showed a significant rebound in international markets, recovering from recent lows after indications of progress emerged in the US-Iran peace negotiations. Investors are keenly awaiting final confirmation of a potential agreement that could lead to the reopening of the Strait of Hormuz on Friday (June 19).The international spot price of yellow metal jumped nearly 2 percent, as eased concerns over a prolonged conflict in the Middle East provided a strong tailwind to bullion prices. While international spot gold had previously dropped to a low of $4,328 per ounce on Comex since Monday, it managed to climb back to trade at $4,364 per ounce.
Domestic Gold and Precious Metal Market Movement
In line with the global surge, domestic spot gold traded higher, reaching ₹1,50,192 per 10 grams of 24-karat purity as of 18:51 IST. This positive sentiment extended to futures markets on the MCX.MCX gold futures for the August contract were reported up by 0.09 percent, trading at ₹1,53,051 per 10 grams. Conversely, silver futures for the July contract experienced a minor decline, slipping 0.06 percent to ₹2,51,314 per kilogram from their previous close.
Tracking the Gold Price Trajectory and Key Support Levels
Market analysts are closely monitoring critical resistance zones as gold continues its upward trend. Ravi Singh, Chief Research Officer at Master Capital, noted that the current price range is approaching a crucial resistance zone of ₹1,54,000 to ₹1,54,500.This zone holds significance as it incorporates both the 21-day and 55-day EMAs (Exponential Moving Averages). Singh stated that a sustained move above this threshold could improve the short-term outlook and trigger a stronger recovery in prices.
On the downside, the immediate support level is identified at ₹1,51,000 per 10 grams. If this support breaks, Master Capital estimates that another selling pressure wave could drive prices toward ₹1,48,000 per 10 grams. The Augmont Bullion report also noted support for gold above $4,300 and resistance between $4,500 to $4,550 per ounce.
Focus Shifts to Federal Reserve Meeting Outlook
The immediate focus remains strongly fixed on the Federal Reserve’s policy gathering scheduled for June 17. Any guidance provided by the Fed during this meeting is anticipated to significantly steer gold prices, US Treasury yields, and the value of the dollar.Previously, the prospect of a deal between the US and Iran weighed negatively on crude oil prices and consequently weakened the US dollar, both factors which supported the rise in bullion values. This dynamic highlights how geopolitics remains deeply entwined with commodity movements.
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