Gold and Silver Prices in India Trade Higher on International Rally

Gold

• On Tuesday, MCX gold rate for April futures contracts opened higher by ₹1,444 (0.90%) at ₹1,61,743 per 10 grams, compared to its previous close of ₹1,60,299.
• The price extended gains after opening higher and was trading at ₹1,61,607 per 10 grams, up by ₹1,308 (0.82%).
• The MCX gold rate touched a high of ₹1,61,791 level.

Silver

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

• On Tuesday, MCX silver price for May futures contracts opened higher by ₹3,840 (1.43%) at ₹2,71,000 per kilogram, compared to its previous close of ₹2,67,160.
• The price was trading higher by ₹9,740 (3.65%) at ₹2,76,900 per kg.
• The MCX silver rate jumped as much as 4.18% to ₹2,78,339 level.

International Markets

• Spot gold prices eased 0.1% to $5,131.24 per ounce.
• US gold futures for April delivery rose 0.7% to $5,141.40.
• Spot silver rose 0.4% to $87.32 per ounce.
• The US dollar fell 0.4%, making greenback-priced bullion cheaper for holders of other currencies.

Impact of US-Iran Tensions

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

• The US-Iran war has effectively shut the Strait of Hormuz, a chokepoint for a fifth of global oil and liquefied natural gas.
• Higher energy costs have fuelled inflation concerns and further dimmed the prospects for a near-term cut in interest rates by the US Federal Reserve.
• Gold is seen as an inflation hedge, but low rates boost its appeal as a zero-yield asset.

Other Commodities

• Spot platinum prices fell 0.6% to $2,168.52.
• Palladium prices eased 0.1% to $1,689.11.