The price of 24-karat gold on Wednesday stood at ₹1,54,800 per 10 grams, including all taxes, up from ₹1,54,700 on Tuesday.
Among major cities, gold was priced at ₹1,54,854 per 10 grams in Mumbai, ₹1,54,700 in Delhi, Bengaluru and Pune, and ₹1,56,092 in Ahmedabad. Gold in Chennai is priced at ₹ 1,56, 158.
Silver prices for 10 grams stood at ₹2,655 in Delhi, ₹2,656.98 in Mumbai, and ₹2,653 in Bengaluru.
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Gold rate and the US-Iran war
Gold prices edged lower on Wednesday as renewed hostilities in the Middle East lifted oil prices and stalled progress in US-Iran talks, while investors awaited key US economic data.
Fresh strikes have raised fears that the conflict could spiral back into war.
Spot gold fell 0.3% to $4,471.38 per ounce by 0511 GMT, after gaining more than 1% in the previous session. U.S. gold futures for August delivery slipped 0.5% to $4,499.30.
"The market is now looking at the possibility that this ceasefire with Iran may not hold even though Trump is going to push for a peace deal resolution," said Kelvin Wong, senior market analyst at OANDA.
{{/usCountry}}"The market is now looking at the possibility that this ceasefire with Iran may not hold even though Trump is going to push for a peace deal resolution," said Kelvin Wong, senior market analyst at OANDA.
{{/usCountry}}"If we start to see further escalation, that could also dampen whatever recovery that gold might have had," he added.
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What is happening in the US-Iran war?
Tensions in the Gulf flared again on Wednesday, with the US military saying Iranian missile attacks targeting Bahrain, Kuwait and other regional locations were either intercepted or failed. Meanwhile, diplomatic efforts between Washington and Tehran showed little progress.
US Secretary of State Marco Rubio said on Tuesday that President Donald Trump's negotiating team had not offered Iran sanctions relief in exchange for reopening the Strait of Hormuz, stressing that any easing of sanctions was linked to Tehran abandoning its nuclear programme.
Oil prices rose more than 1% on Wednesday, adding to concerns over inflation and the prospect of higher interest rates.
While gold is traditionally considered a hedge against inflation, higher interest rates reduce the appeal of the non-yielding asset.
Cleveland Federal Reserve President Beth Hammack said on Tuesday that the US central bank may have to raise interest rates soon if already elevated inflationary pressures continue to intensify.
Investors are now awaiting US nonfarm payroll data due later on Wednesday and the employment report scheduled for Friday for clues on the Federal Reserve's policy path.
Among other precious metals, spot silver fell 0.4% to $74.82 per ounce, platinum declined 0.5% to $1,927.25, while palladium was steady at $1,369.64.