Gold and Silver Prices Rise on MCX: Futures of Gold Surge Past Rs 1.54 Lakh, Silver Sees 1.52% Gain

Global Bullion Prices Edge Higher Amid US-Iran Setback and Elevated Oil Prices

Precious metal prices traded marginally higher in early trade, driven by 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 at $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 MCX (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.

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

Market analysts suggest that the bullion price is influenced by a complex macro equation that includes oil shock inflation, Fed uncertainty, sticky rates, and dollar strength. According to Ruchit Thakur, Market Analyst at VT Markets, the market is now pricing a far more complex macro equation that includes oil shock inflation, Fed uncertainty, sticky rates, and dollar strength.

As a result, gold is no longer responding to geopolitics in isolation and is not acting like a traditional panic asset. The next significant directional shift in gold prices is likely to be determined by the outcome of the conflict between safe-haven demand and higher-for-longer US rates, rather than just headlines.