Gold prices in Delhi reached a five-month high on Monday

Gold climbed to a more than five-month high of Rs 1.64 lakh per 10 grams in the national capital on Monday, tracking firm global trends and renewed demand amid escalating US-Iran tensions, as reported by the All India Sarafa Association.

The yellow metal of 99.9% purity appreciated by Rs 900 to Rs 1,64,400 per 10 grams (inclusive of all taxes), from Friday's closing level of Rs 1,63,500 per 10 grams, according to the association. The precious metal was last quoted around this level on March 9, when it stood at Rs 1,64,300 per 10 grams.

Silver rises for third session

Silver also advanced for the third straight session, rising by Rs 3,500 to an over four-month high of Rs 2,53,500 per kilogram (inclusive of all taxes), as per the association. The white metal had settled at Rs 2,50,000 per kg in the preceding session. It was last around this level on April 17, when it was quoted at Rs 2,53,000 per kg.

Gold surged in the domestic markets on Monday, while silver also remained elevated, driven by a weaker US dollar and strong safe-haven demand amid renewed US-Iran tensions, according to Gaurav Garg, Head of Research at Lemonn Markets Desk.

Global markets and analyst views

In the international markets, spot gold gained USD 42.45, or 1%, to USD 4,646.54 per ounce, and silver traded flat at USD 69 per ounce. Spot gold extended its rally on Monday, pushing near USD 4,650 per ounce in the global markets, said Kaynat Chainwala, AVP Commodity Research at Kotak Securities.

Analysts said the next move in bullion may hinge less on geopolitics and more on inflation. Chainwala said the Federal Reserve's response to higher oil rates amid the Iran escalation will be closely watched, particularly whether the price shock is seen as temporary or as a broader inflation risk that could delay monetary policy easing.

Focus shifts to US data and Fed Chair's Jackson Hole debut

Investors are expected to turn to this week's US Core Personal Expenditures (PCE) data and the debut of Federal Reserve Chair Kevin Warsh at the Jackson Hole Symposium for clues on how much inflation the American central bank is willing to tolerate, Chainwala added.