Gold, silver rise on safe-haven demand amid geopolitical uncertainty
Mumbai, May 27
Gold and silver prices traded marginally higher on Wednesday amid continued geopolitical uncertainty and cautious optimism surrounding possible progress in US-Iran peace negotiations.
On the Multi Commodity Exchange (MCX), gold futures (June 5) were trading 0.10 per cent or Rs 164 higher at Rs 1,57,780 at around 10:35 am.
The yellow metal touched an intraday high of Rs 1,57,898, up 0.17 per cent or Rs 282. It recorded an intraday low of Rs 1,57,454, down 0.10 per cent or Rs 162 from the previous close of Rs 1,57,616.
On the other hand, silver futures (July 3) too witnessed buying optimism, gaining 0.73 per cent or Rs 2,000 to hit an intraday high of Rs 2,72,628 so far.
At the last count, the white metal was trading at Rs 2,72,379, up 0.65 per cent or Rs 1,751. It recorded an intraday low of Rs 2,71,350, which was still higher by 0.26 per cent or Rs 722 against its previous close of Rs 2,70,628.
On the commodity exchange, silver and gold earlier opened at Rs 2,72,603 and Rs 1,57,541, respectively.
Similarly, in the international market, COMEX gold was trading at $4,508.20, up 0.13 per cent. COMEX silver was seen at $77.09 an increase of 0.63 per cent.
The commodity market experts said that gold stabilised above the $4,500-per-ounce mark on Wednesday after witnessing pressure earlier this week, as investors remained cautiously optimistic over possible progress in US-Iran peace negotiations.
US President Donald Trump said discussions to extend the ceasefire and reopen the Strait of Hormuz were ongoing, while US Secretary of State Marco Rubio cautioned that a final agreement could still take several days," according to the analysts.
They added that despite geopolitical tensions, gold prices remained nearly 15 per cent below their conflict highs as energy-driven inflation concerns strengthened expectations of prolonged tighter monetary policy by major central banks.
On the technical front, analysts said MCX Gold was trading with a cautious-to-mildly positive bias above the Rs 1,58,000 level. Immediate resistance was seen in the Rs 1,59,000-Rs 1,59,500 range, while support was placed near Rs 1,57,500.
For silver, analysts said MCX Silver continued to hold above the Rs 2,71,000 mark amid volatile trade. Resistance was placed in the Rs 2,74,000-Rs 2,75,000 zone, while support was seen between Rs 2,70,000 and Rs 2,68,000.
They noted that safe-haven demand and geopolitical developments would continue to influence the direction of precious metal prices in the near term.
— IANS
Reader Comments
At this point, regular Indians are getting priced out of gold. It's only for the wealthy investors now. Meanwhile, silver is still somewhat accessible for common folks like us who want to save for a daughter's wedding or something. But ₹2.72 lakh per kg? That's also getting ridiculous.
Interesting to see how both gold and silver are reacting to the US-Iran situation. The Strait of Hormuz is a vital chokepoint - any disruption there sends shockwaves through commodity markets. India must be watching this closely since we import most of our oil from that region. Safe-haven buying makes perfect sense here. 🤔
I just don't get why gold is down 15% from its peak even with all this tension. The analysts say it's because of interest rate fears... but bhai, if war is around the corner, who cares about interest rates? Maybe the market is smarter than us and knows something we don't. Still, I bought a few grams last week - never bet against gold in an Indian household!
Silver making a comeback! 🎉 ₹2,000 gain in a day is no joke. But I wish the government would do something to stabilize prices so that small investors like us can plan better. Every time there's a geopolitical crisis, it's the common man's savings that take the hit while big players hedge their bets. Just saying.
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