Gold, Silver Choppy as Trump's Iran Deadline Sparks Crude Rally

On the Multi Commodity Exchange (MCX), gold futures (June 5) were trading at Rs 1,50,228, up Rs 247 or 0.16 per cent at 11:35 am.

On the intraday front, the yellow metal rose as much as 0.32 per cent or Rs 493 to Rs 1,50,474. Earlier in the session, before 10 am, it was trading lower by 0.23 per cent or Rs 356 at Rs 1,49,625.

Similarly, silver futures (May 5) were trading 0.48 per cent or Rs 1,121 higher at Rs 2,34,500. The white metal gained nearly 1 per cent or Rs 2,168 to hit an intraday high of Rs 2,35,547, after earlier witnessing a decline of 0.67 per cent or Rs 1,579 to an intraday low of Rs 2,31,800.

According to analysts, despite geopolitical tensions, precious metals are not showing strong safe-haven behaviour.

Similarly, MCX silver remains volatile around Rs 2,31,000-Rs 2,33,000, with resistance at Rs 2,33,000-Rs 2,34,000. Analysts said a breakout could push prices higher, while a decline below Rs 2,30,000 may accelerate losses.

In the international market, precious metals were trading on a flat note.

COMEX gold was trading at $4,681.34, down $3.36 or 0.07 per cent, while COMEX silver was at $72.94, up $0.09 or 0.13 per cent.

Meanwhile, spot gold stood at $4,653, up $3 or 0.06 per cent, while spot silver traded at $72.78, down $0.02 or 0.04 per cent.

The volatility in precious metals comes amid rising uncertainty as traders and investors react to a deadline set by US President Donald Trump for Iran regarding the reopening of the Strait of Hormuz.

In response, Iran reportedly said it seeks a lasting end to tensions with the US and Israel and pushed back against pressure to reopen the Strait. Trump, however, warned that Iran could be "taken out" if it failed to meet his Tuesday night deadline to reach a deal.

In addition, crude oil prices surged sharply, with Brent crude futures rising as much as 1.69 per cent or $1.86 to $111.63 by 9:57 a.m. US WTI crude futures jumped over 3 per cent or $4.15 to $116.56.

- IANS