Gold and Silver Prices Rise Amid Cancellation of Iran Strike, Volatility Continues

Precious Metals Prices Recover Amid Ongoing US-Iran Tensions

On Friday, 27 March, gold and silver prices saw a rebound as both metals attempted to recover from the previous day's sell-off. The recovery was driven by the US President Donald Trump's decision to delay a threatened strike on Iran's energy infrastructure and extend the deadline for Tehran to reopen the Strait of Hormuz until 6 April.

May silver futures on the COMEX surged by $2.50 to reach an intraday high of $74 per troy ounce, while April gold futures gained $93 to hit an intraday high of $4,601 per troy ounce. Despite the recovery, gold is still down 3.13% so far this week, positioning it to record a fourth consecutive weekly loss.

The ongoing conflict between the US and Iran has led to increased volatility in the precious metals market. The Strait of Hormuz, a critical shipping lane through which nearly one-fifth of the world's oil supply flows, has been a major point of contention. Iran has effectively shut the passage, leading to a barrage of headlines and a sell-off in US equities.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

In the domestic market, April gold futures on the MCX jumped by ₹3,400 per 10 grams to hit an intraday high of ₹1,42,939. Silver prices on MCX surged by ₹8,027 per kilogram to reach an intraday high of ₹2,27,907.