Gold Prices Rise on Weak Dollar and US‑Iran Tensions

Global gold prices recovered in early June after a brief dip, buoyed by a weaker U.S. dollar, lower Treasury yields and cautious optimism around U.S.–Iran talks. Spot gold climbed to about $4,528 per ounce, while Indian bullion markets saw the 10‑gram 24‑karat price reach ₹1.61 lakh, driven by a soft dollar and easing oil prices. In Pakistan, 24‑karat gold rose to Rs 476,362 per tola, mirroring the upward trend in international markets.

Analysts linked the rally to ongoing de‑dollarisation, with central banks increasing gold allocations as the dollar’s reserve‑currency status faces pressure. Portfolio manager Tom Winmill noted that a persistently low DXY index could give gold a “second wind.” Meanwhile, geopolitical uncertainty in the Middle East – notably the U.S.–Iran standoff and threats to the Strait of Hormuz – continues to influence investor sentiment, keeping gold attractive as a safe‑haven asset.