Jewellery Stocks Advance As Gold Rally Supports Sector Sentiment

Jewellery stocks witnessed strong buying interest on Monday, tracking a rise in global bullion prices following developments surrounding a proposed peace agreement between the U.S. and Iran. Investors turned optimistic on gold-linked counters as the precious metal extended gains in international markets.

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Kalyan Jewellers India emerged as the top gainer among listed jewellery companies, rising 7.85% to ₹371.80 during morning trade. Senco Gold advanced 4.26% to ₹352.75, while PC Jeweller gained 2.80% to ₹9.17. PN Gadgil Jewellers moved up 1.65% to ₹556.60 and Titan Company added 1.19% to ₹4,233.80.

Gold Prices Climb After Diplomatic Breakthrough

The rally in jewellery stocks came after U.S. President Donald Trump announced that the United States and Iran had reached a framework understanding aimed at ending hostilities. As per reports, the agreement is expected to be formally signed later this week and includes plans related to the reopening of the Strait of Hormuz.

The development triggered a sharp move in precious metals. Reuters reported that spot gold rose 2.5% to $4,323.29 per ounce, marking its highest level since June 9. U.S. gold futures for August delivery also gained 2.5% to $4,343.80 per ounce. The latest rise extended gold’s winning streak to a third consecutive session.

Dollar Weakness Adds Support

Gold received additional support from weakness in the U.S. dollar. The dollar index slipped to a 10-day low after news of the agreement emerged, making gold more affordable for buyers holding other currencies.

At the same time, crude oil prices declined more than 4% as concerns over potential disruptions to energy supplies eased. Lower oil prices are often viewed as supportive for inflation expectations and can influence interest-rate outlooks in major economies.

Market participants also reduced expectations of further interest-rate tightening in the U.S., a factor that generally benefits non-interest-bearing assets such as gold.

Broader Precious Metals Also Gain

Strength was visible across the wider precious metals segment. According to Reuters, spot silver climbed 3.3% to $70.19 per ounce. Platinum advanced 2.8% to $1,765.40 per ounce, while palladium gained 3.1% to $1,323.22 per ounce.

Bullion prices firmed up which helped sentiment in jewellery stocks as investors tracked the impact of higher gold prices on the values of their stocks and the overall business activity in the sector. Jewellery counters were among the major gainers in the broader market as trade progressed.