Gold and Silver Prices Climb Amid Dollar Weakness, Easing US-Iran Tensions
Precious Metals Gain Amid US-Iran Ceasefire Optimism and Weaker Dollar
Precious metals traded higher on early May 7 trade as optimism around a potential US-Iran peace deal eased inflation worries, while a weaker dollar further supported demand.
The international spot gold traded 0.37 percent higher to $4,711.80 per ounce on early Comex trade, and silver inched 1.26 percent up to $78.27 per ounce. The domestic gold futures for June delivery closed the Wednesday session 0.06 percent higher to Rs 1,52,219 per 10 grams of 24-karat purity on MCX. Silver futures for July delivery inched 3.88 percent up to Rs 2,53,800 per kilogram.
Gold's positive outlook is attributed to easing West Asia tensions, which are likely to spark renewed buying interest. The ceasefire news between the US and Iran boosted safe-haven demand, while currency weakness added momentum.
Precious Metals Outlook
The Augmont Bullion report (May 6) noted that gold bounced from the $4,500–4,550 (Rs 1,49,000) support zone and is now targeting resistance at $4,800–4,850 (Rs 1,55,000). Silver recovered from the $73 (Rs 2,43,000) support level and is expected to advance toward resistance at $77–78 (Rs 2,54,000–2,56,000).
| Metal | May 6 Low | May 6 High |
|---|---|---|
| Gold | $4,500 (Rs 1,49,000) | $4,850 (Rs 1,55,000) |
| Silver | $73 (Rs 2,43,000) | $78 (Rs 2,56,000) |
The dollar index, which tracks the US currency against six major peers, on Wednesday fell 0.3 percent to 97.993 after touching 97.623. Investors are advised to hold positions for now, closely monitoring geopolitical developments, upcoming US economic data, and the performance of the US dollar. Meanwhile, silver prices remain volatile, with the outlook tied to physical demand from key consumers.
Note: Gold prices vary as per purity, and the prices of 10 grams of gold moved in different cities are not provided in this article.
Investor Takeaway
Gold and silver prices may continue to rise due to easing US-Iran tensions and a weaker dollar.
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