Gold Surges Above ₹1.5 Lakh as Silver Rises Over 1% Amid US-Iran Peace Deal Optimism

Gold and silver prices in India have opened sharply higher on the Multi Commodity Exchange (MCX) on Friday. The MCX gold rate for August futures contracts increased by ₹1,663, or 1.11%, reaching ₹1,50,595 per 10 grams, while the MCX silver price for July futures contracts surged by ₹3,123, or 1.30%, to ₹2,42,776 per kg. In contrast, international gold prices are experiencing downward pressure, set for a weekly loss due to inflation concerns and anticipated interest rate hikes by the US Federal Reserve. Spot gold fell 0.5% to $4,191.17 per ounce, while spot silver declined 0.4% to $67.10 per ounce.

The driving forces behind this price movement include optimism over a potential US-Iran peace deal, which could stabilize geopolitical tensions in West Asia and reopen critical shipping lanes such as the Strait of Hormuz. Easing geopolitical tensions often bolster sentiment in precious metals markets, leading to increased buying activity. However, the broader context indicates that concerns over rising inflation and a stronger dollar, alongside expectations of a Federal Reserve rate hike, are exerting downward pressure on gold prices in international markets. Recent data indicated a significant rise in US producer prices, contributing to fears that the Fed may act more aggressively in its monetary policy.

Short-term outlook for traders suggests a cautious yet mildly positive sentiment, particularly for MCX gold and silver. Analysts note that MCX gold may encounter resistance at ₹1,52,000, with support identified at ₹1,49,500. Traders are recommended to consider buying gold futures as a pullback is anticipated. For MCX silver, resistance levels are set at ₹2,55,000, while a decisive break below ₹2,40,000 could lead to a consolidation of prices. The market dynamics suggest that maintaining momentum above these critical levels is essential for improving the outlook, and traders should remain vigilant of geopolitical developments and broader financial sentiment that could significantly impact price direction.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)