Gold surges 4% to 3-week high as ceasefire signals weaken dollar

Gold prices staged a powerful rebound, surging over 4% to approach the $4,900 per ounce mark and scaling a near three-week high, as shifting geopolitical dynamics reignited safe-haven demand. The upswing followed indications from Donald Trump of a temporary pause in hostilities with Iran, alongside constructive developments surrounding the reopening of the strategically vital Strait of Hormuz. The rally was further underpinned by pronounced weakness in the US dollar, with the dollar index slipping below 99, enhancing bullion?s relative appeal. Notably, gold had previously undergone a steep correction of nearly 25% from its peak, as elevated energy prices amplified inflation concerns and reinforced a more hawkish global monetary policy outlook. On the domestic front, MCX June gold futures climbed 2.18% to ₹1,53,563 per 10 grams, after touching an intraday high of ₹1,54,934, indicating renewed buying interest. Looking ahead, investor focus pivots to the upcoming US CPI release, which is expected to offer critical insights into inflation dynamics amid ongoing geopolitical flux.

Powered by Commodity Insights