Gold, Silver Set to Gain as West Asia Tensions Ease

New Delhi (IANS): Gold and silver prices will likely open higher in Tuesday’s evening session as hopes for de-escalation in the West Asia conflict bolster market sentiment.

Following global cues, spot gold jumped 2.39 percent to $4,619.14 per ounce by 11 A.M., while US gold futures for June delivery gained 2 percent to reach $4,649.26. Spot silver advanced 4.82 percent to $73.48 per ounce, and COMEX silver rose 4.44 percent from its previous close to trade at $73.705.

On Monday, MCX gold futures (June 5) fell 0.15 percent to end at Rs 1,47,450, while MCX silver futures (May 5) remained flat, closing at Rs 2,29,033.

Despite the current rally, the yellow metal faces its steepest monthly decline in over 17 years. Elevated energy prices continue to dampen expectations that the US will cut interest rates.

Market sentiment improved after reports suggested President Donald Trump signaled a willingness to end the military campaign against Iran, potentially triggering a “risk-on” mood across global financial markets. Reports also indicated that the President might halt US military action even if the Strait of Hormuz remains closed, deferring efforts to reopen the oil route to a later stage.

While bullion prices have fallen more than 13 percent this month—marking the sharpest monthly drop since October 2008—they remain up approximately 5 percent for the quarter.

In response to these developments, global crude oil futures dropped into negative territory. Brent crude declined 2.37 percent to an intraday low of $104.84 per barrel, while US WTI futures fell 2 percent to $100.83 per barrel by 11 A.M.

Although Indian stock markets remain closed for Mahavir Jayanti, easing geopolitical tensions may soothe investor nerves. Meanwhile, the MCX will open for its evening session from 5 P.M. to 11:30 P.M., with GIFT Nifty futures already trading about 1 percent higher.