Global Commodities Report

Gold Prices Surge Amid Hopes of De-escalation in US-Iran Conflict

On Thursday, gold prices rose 0.7% to $4,535.17 per ounce, extending gains to a third straight session. The increase in gold prices was fueled by hopes of de-escalation in the US-Iran war in the Middle East and reduced bets on a US Federal Reserve rate hike this year. US gold futures for April delivery declined 0.5% to $4,532.20.

Silver Prices also rose 0.6% to $71.71 per ounce. In other commodities, spot platinum prices gained 0.3% to $1,925.05 and palladium price was up 0.1% at $1,424.55.

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

US-Iran Conflict and Interest Rate Hopes

The US-Iran war and the effective closure of the Strait of Hormuz have kept crude oil prices elevated, raising inflation fears. Concerns over high inflation have reduced the probability of an interest rate cut by the US Federal Reserve. The probability of a Fed rate hike by December has fallen to 18%, down from about 30% in the previous session, according to the CME Group's FedWatch tool.

Gold and Silver Prices in India

Gold and silver prices in India witnessed a sharp rally on Wednesday amid strong buying. In the previous session, MCX gold rate ended higher by ₹5,188, or 3.73%, at ₹1,44,100 per 10 grams. MCX silver price jumped by ₹10,759, or 4.80%, to close at ₹2,34,700 per kg.

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

Market Holiday

The commodity market will remain closed today, March 26, for the morning session on account of the Ram Navami holiday. Trading in gold and silver on MCX will resume in the evening session at 5 PM.