Gold declines ₹900 to ₹98,900/10 g on Iran-Israel ceasefire hopes

Gold prices plummeted ₹900 to ₹98,900 per 10 grams in the national capital on Tuesday as the expectations of a ceasefire between Iran and Israel reduced the precious metal's safe-haven appeal in the global market.

According to the All India Sarafa Association, the precious metal of 99.9% purity had closed at ₹99,800 per 10 grams in the previous market session.

Gold of 99.5% purity depreciated by ₹800 to ₹98,300 per 10 grams (inclusive of all taxes). It had finished at ₹99,100 per 10 grams on Monday.

"Gold is under pressure as safe-haven demand eases after the US confirmed a full ceasefire between Iran and Israel. The announcement came shortly after Iran attacked a US military base in Qatar, briefly heightening tensions before quickly calming them.

"With fears of further escalation fading, investors are booking profits and pulling back from gold," Abans Financial Services' Chief Executive Officer Chintan Mehta said.

Silver prices also diminished by ₹1,000 to ₹1,04,200 per kilogram (inclusive of all taxes) on Tuesday. The metal had ended at ₹1,05,200 per kg in the previous market close.

Meanwhile, spot gold fell by $46.05 or 1.37% to $3,323.05 per ounce in the overseas markets.

"Investors are closely watching Federal Reserve Chair Jerome Powell, who is set to testify before US Congress on Tuesday and Wednesday, which can provide any signals on the future policy path of interest rate cuts," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.