Gold and Silver Prices Rise as US-Iran Ceasefire Uncertainty Persists

Global Markets Remain Cautious Amid Middle East Tensions

Gold and silver prices traded flat on Thursday, 9 April, as a weaker US dollar lent support, even as tensions in the Middle East resurfaced. The situation in the region has remained volatile, with Iran warning that some terms of the ceasefire deal had been breached.

Market Reaction

Comex gold futures surged by just $25 per troy ounce to an intraday high of $4,802, while silver futures are trading flat at $75.47. However, the metals failed to extend their previous day's rallies due to uncertainty surrounding the two-week ceasefire.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

The fragile truce was also reflected in markets on Thursday, trimming gains made a day earlier. Oil prices rose, with Brent crude, the international benchmark, at $97 per barrel, up 4%. In contrast, stocks dipped.

US Economy and Consumer Price Index

On the economic front, traders are awaiting US Consumer Price Index data for March, due to be released on Friday. The Personal Consumption Expenditure (PCE) index, the Fed's preferred inflation gauge, rose 2.8% in the 12 months through February, in line with estimates, and likely increased further in March, Reuters reported.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Domestic Market

In the domestic market, gold futures on MCX surged by ₹1,073 per 10 grams to hit an intraday high of ₹1,53,080, extending their winning streak to a fourth straight session and taking cumulative gains to 2.2%, based on today's high. Silver futures also traded with modest gains, with the highly volatile metal rising by ₹814 per kilogram to ₹2,40,732. The recent rally has helped the white metal recover ₹22,160 from its April lows, based on today's high.