Gold and Silver Prices Rise: MCX Gold Futures Surpass Rs 1.54 Lakh, Silver Increases by 1.52% on May 12

Gold Prices Edge Higher Amid US-Iran Tensions and Elevated Oil Prices

Precious metal prices traded marginally higher in early trade on Tuesday, May 12, 2026, amidst a US-Iran setback, elevated oil prices, and a firmer dollar. The international spot gold price rose 0.21 percent to $4,738 per ounce, while silver inched 1.11 percent up to $86.90 per ounce on early Comex trade, amid uncertainty over the Iran conflict.

In the domestic market, the futures gold for June delivery traded 0.03 percent higher at Rs 1,54,125 per 10 grams from its previous close, while silver futures for the July contract inched 1.52 percent higher to Rs 2,82,532 on the Multi Commodity Exchange (MCX) at 09:08 IST.

The bullion price is expected to be largely driven by global developments, particularly the progress or deterioration of US–Iran negotiations, which will remain a key factor to monitor, given its significant implications for geopolitical stability and the potential impact on crude oil price volatility.

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The market is now pricing a far more complex macro equation that includes oil shock inflation, Fed uncertainty, sticky rates, and dollar strength. According to Ruchit Thakur, Market Analyst at VT Markets, gold is no longer responding to geopolitics in isolation. As a result, despite increased international tensions, gold is not acting like a traditional panic asset.

Thakur notes that whichever side prevails in this conflict, such as safe-haven demand vs higher-for-longer US rates, will probably determine the next significant directional shift more than just headlines. The tug-of-war between these factors explains why gold has stayed remarkably range-bound despite a very tense global background.