Gold Nears Three-Month High as Geopolitical Risks Boost Safe-Haven Demand

New Delhi, Aug 25: Gold prices remained firm in Indian markets on Tuesday as renewed geopolitical uncertainty surrounding Iran supported demand for the precious metal, while silver prices moved lower in the domestic bullion market.

The latest US measures targeting Iran and concerns over their potential impact on global trade and financial markets encouraged investors to seek safe-haven assets. A softer US dollar and expectations surrounding US Treasury bond buybacks also provided support to international gold prices.

In the international market, spot gold rose around 0.6 per cent to $4,677.19 an ounce, marking its highest level in more than three months. Gold has also recorded strong gains during August, reflecting sustained investor demand amid global economic and geopolitical uncertainty.

In India, retail prices for both 24-karat and 22-karat gold remained relatively firm across major markets. At the same time, silver prices witnessed some pressure.

On the Multi Commodity Exchange, gold futures for the near-month contract were trading around 0.09 per cent higher at ₹1,63,640 per 10 grams, while silver futures were down around 0.62 per cent at ₹2,43,730 per kg during morning trade.

Retail bullion prices can vary across cities depending on purity, local taxes, making charges and other market factors. While 24-karat gold represents the highest commonly traded purity, 22-karat gold is widely used for jewellery because of its greater durability.

The latest movement highlights the contrasting performance of the two precious metals, with gold benefiting from safe-haven buying while silver remained comparatively weaker.

Market participants are likely to closely track developments surrounding Iran, movements in the US dollar and Treasury yields, and upcoming US economic data for further direction in precious-metal prices.