Synopsis: Precious metals rebounded sharply on Thursday morning as rising hopes for a U.S.-Iran agreement and a weakening U.S. Dollar boosted investor sentiment. Silver futures on the MCX jumped 1.6% to ₹2,55,735 per kg, while domestic gold futures climbed to ₹1,54,756 per 10 grams.
After a volatile Wednesday where prices eased from one-month highs, gold and silver began Thursday’s session with renewed momentum. The primary catalyst is a shift in the geopolitical landscape, as the Donald Trump administration signaled optimism regarding a ceasefire to the conflict with Iran.
While the Strait of Hormuz remains blocked for shipping, the possibility of reopening the waterway has eased immediate fears of supply disruptions. At the same time, the U.S. Dollar Index hovered near a six-week low, significantly lowering costs for international buyers and making bullion a more appealing hedge.
| Market | Metal/Type | Current Rate (approx) |
|---|---|---|
| MCX (June Futures) | Gold(24K) | Rs. 1,54,756 / 10g |
| MCX (June Futures) | Silver | Rs. 2,55,735 / Kg |
| Mumbai (Spot) | Gold(99.9) | Rs. 1,52,865 / 10g |
| Bengaluru(spot) | Gold(24K) | Rs. 1,60,000 / 10g |
Following the international trend, Indian bullion markets saw a sharp increase in early trade on the MCX. Silver for May 2026 delivery led the gains, rising ₹4,000 (1.6%) to ₹2,55,735 per kg. Gold followed, with the June 2026 contract increasing by ₹808 (0.52%) to reach ₹1,54,756 per 10 grams, reflecting strong domestic demand as global prices rise. Market analysts are closely monitoring the $4,900 resistance level for spot gold. According to Kelvin Wong of OANDA, breaking this barrier could lead to a rally toward the psychological milestone of $5,000 per ounce.
However, investors are cautious regarding the Federal Reserve’s interest rate plans. While geopolitical tensions provide “safe-haven” support, Chicago Fed President Austan Goolsbee warned that ongoing inflation driven by energy costs could postpone U.S. rate cuts until 2027. High-interest rates usually limit gold’s upside by increasing the opportunity cost of holding non-yielding assets.
The current trend appears bullish but is sensitive. While the “Amazing Two Days” of negotiations promised by the U.S. administration offer hope, the market remains tense. Any failure in the ceasefire talks or an unexpected hawkish shift from the Fed could quickly reverse today’s gains.
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