Gold and Silver Prices Surge Amid US-Iran Geopolitical Tensions
NEW DELHI – Precious metals witnessed a significant rally on Thursday as mounting geopolitical uncertainty and a softening U.S. Dollar drove investors toward safe-haven assets. On the Multi Commodity Exchange (MCX), gold and silver prices climbed by up to 1.5%, tracking a similar upward trend in international markets.
Market Performance Breakdown
1. Domestic Prices (MCX)
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Gold: June 5 futures rose by 0.49% (up ₹755) to hit an intraday high of ₹1,52,887.
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Silver: July 3 futures saw a more aggressive jump of 1.49% (up ₹3,790), reaching ₹2,57,055. The white metal opened strong and maintained its momentum throughout the morning session.
2. International Benchmarks (COMEX)
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Gold: Traded at $4,703 per ounce, up 0.21%.
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Silver: Gained 1.12% to reach $78.17 per ounce.
Primary Drivers of the Rally
Geopolitical Uncertainty
The primary catalyst remains the fragile state of the US-Iran peace deal. While reports suggest the U.S. has requested Iran to halt its nuclear program and reopen the Strait of Hormuz, the Iranian Foreign Ministry’s pending response has kept the market on edge. Despite optimistic comments from U.S. President Donald Trump regarding Iran’s desire for a deal, the prevailing ambiguity is fueling safe-haven demand.
Weakness in the U.S. Dollar
The Dollar Index has slipped below the 98 mark. A weaker dollar typically makes gold and silver—which are priced in dollars—cheaper for holders of other currencies, thereby boosting global demand and prices.
Surge in Energy Costs
Rising crude oil prices are adding inflationary pressure, which traditionally supports gold.
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Brent Crude: Rose 1.21% to $102.50 per barrel.
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WTI Crude: Climbed 1.47% to $96.48 per barrel.
Future Outlook
Commodity experts maintain a positive near-term outlook for precious metals. As long as geopolitical sentiment remains volatile and the dollar remains under pressure, gold and silver are expected to sustain their current momentum. Investors are closely monitoring the next steps in the Tehran-Washington dialogue as a decisive factor for market direction.
