Gold, silver gain up to 2 pc amid optimism over West Asia peace talks
Mumbai, June 12
Gold and silver prices traded higher on Friday, with precious metals surging by up to 2 per cent amid hopes of a peace deal in the ongoing West Asia conflict.
On the Multi Commodity Exchange (MCX), gold futures (August) increased as much as 1.11 per cent or Rs 1,668 to hit an intraday high of Rs 1,50,600 as of around 11:30 am.
The yellow metal was trading at Rs 1,49,916, up 0.66 per cent or Rs 948. It touched an intraday low of Rs 1,49,569, a gain of 0.42 per cent or Rs 637 from the previous close.
Meanwhile, silver futures (July) traded at Rs 2,42,143, higher by Rs 2,490 or 1 per cent.
The white metal touched an intraday high of Rs 2,44,817, jumping 2.15 per cent during the session so far. It recorded an intraday low of Rs 2,41,601, up 0.81 per cent or Rs 1,948 from the previous close.
Earlier in the day, gold and silver began the session at Rs 1,50,595 and Rs 2,42,776, respectively, on the commodity exchange.
According to commodity market experts, bullion remained under pressure overall and was headed for a second consecutive weekly decline as persistent inflation concerns and growing expectations of a US Federal Reserve rate hike continued to weigh on sentiment.
Analysts said precious metals rebounded sharply from six-month lows after US President Donald Trump indicated that the US and Iran could reach a peace agreement as early as this weekend.
However, gains remained limited amid continued uncertainty over the negotiations, with Iranian officials denying that a final agreement had been reached, according to them.
Optimism around a potential diplomatic breakthrough eased concerns over global energy supplies, triggering a decline in crude oil prices and improving broader market risk appetite, experts added.
Market participants will now track developments in US-Iran negotiations and upcoming commentary from the Federal Reserve for further direction in precious metal prices.
In international markets, COMEX silver traded at $66.94, up more than 4 per cent, while COMEX gold rose over 2 per cent to $4,203.70 per ounce.
Meanwhile, crude oil prices declined sharply, with US West Texas Intermediate (WTI) crude falling roughly 3 per cent to $85 per barrel. International benchmark Brent crude declined 1.59 per cent to $88.94 per barrel.
— IANS
Reader Comments
As someone who follows global markets from India, it's fascinating how interconnected everything is. Gold up 2% on peace talks, while crude is down 3%. If there's a real deal, we might see lower oil prices which would be great for our import bill. But those Iranian denials make me skeptical - I'll wait for actual confirmation before jumping in.
My wedding is next month and I was planning to buy gold jewelry for the bride. This price surge is making me nervous! ? Should I buy now or wait? With talks of rate hikes by Fed, it might cool down a bit. But you know how Indian marriages are - can't postpone the gold purchase, it's tied to auspicious timing. Let's hope these gains are temporary.
Interesting how geopolitical tensions always create volatility. The peace talk optimism seems more like market makers taking positions than any real breakthrough. Considering gold was at 6-month lows, this could just be a technical bounce. For long-term investors, dips remain buying opportunities - especially with our wedding season approaching.
Respectfully, this article misses the bigger picture. Even if peace talks in West Asia succeed, the real driver for gold is the US Fed rate trajectory. With inflation still sticky, rate hikes are more likely than cuts. That should keep a lid on gold prices. Silver's 4% jump in international markets is interesting though - industrial demand might be supporting it. ?
As an NRIn, I track these moves closely for my parents back home who hold gold ETFs. The peace talk rally
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