Gold, Silver Prices Rise Amid Iran Ceasefire Hopes

Precious Metals Trade with Modest Gains Amid Ongoing West Asia Tensions

Precious metals traded with modest gains during Monday's session, as investors awaited more clarity on a potential ceasefire in West Asia. The strong US dollar and elevated bond yields continued to cap the upside rally.

May silver futures on the COMEX rebounded, gaining nearly $1 to reach an intraday high of $73.73 per troy ounce. April gold futures surged $54 to hit an intraday high of $4,733 per troy ounce, partially recovering from Thursday's $133 crash. Both gold and silver closed last week with gains of over 4%, however, they remain at sharp discounts to their recent peaks.

A potential ceasefire in West Asia remains a topic of discussion, with Iran and the United States having received a proposal to end hostilities that could come into effect as early as Monday and lead to the reopening of the Strait of Hormuz. Regional mediators are discussing a potential 45-day ceasefire as part of a two-phase deal that could ultimately lead to a permanent end to the war.

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Despite hopes of a ceasefire, the conflict in West Asia has entered its sixth week, with Israel reportedly bombing the South Pars petrochemical plant at Asaluyeh in Iran. US President Donald Trump on Sunday intensified his threat to strike Iran's critical infrastructure if the country does not reopen the Strait of Hormuz by his Monday deadline.

The conflict's impact is being felt globally, with disruptions to crude oil supply forcing many economies to shift to alternatives such as coal, raising concerns about emissions. Gold and silver, which typically witness strong demand during geopolitical tensions, have remained largely subdued since the onset of the conflict, as fears persist that higher crude energy prices could prompt central banks to tighten monetary policy, making these non-yielding assets less attractive.

In the domestic market, April gold futures on MCX jumped ₹1,710 per 10 grams to hit an intraday high of ₹151,300. Silver prices also regained strength on MCX, surging ₹3,895 per kilogram to reach an intraday high of ₹236,390. The white metal has rebounded ₹36,747 from its recent lows.

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