Daijiworld Media Network - Mumbai
Mumbai, Jun 12: Gold and silver prices witnessed strong gains on Friday, with both precious metals climbing sharply in domestic and international markets amid renewed optimism over a possible diplomatic breakthrough between the United States and Iran.
On the Multi Commodity Exchange (MCX), gold futures for August delivery surged during early trade, touching an intraday high of Rs 1,50,600 per 10 grams. By late morning, the contract was trading around Rs 1,49,916, reflecting a healthy rise from the previous session's close.
Silver also extended its upward momentum, with July futures trading near Rs 2,42,143 per kg. During the session, the metal touched an intraday high of Rs 2,44,817, registering gains of more than 2 per cent before paring some advances.
Both metals opened higher and remained supported by increased investor interest in safe-haven assets following developments in West Asia.
Market analysts said bullion prices rebounded after US President Donald Trump suggested that Washington and Tehran could be moving closer to a peace agreement, potentially within days. The remarks sparked fresh buying in precious metals, although uncertainty remains after Iranian officials pushed back against reports of a finalised deal.
Despite Friday's gains, experts noted that gold and silver are still on course for a second consecutive weekly decline, weighed down by persistent inflation concerns and expectations that the US Federal Reserve could maintain a tight monetary policy stance.
The prospect of easing geopolitical tensions also impacted energy markets. Expectations of improved stability in the region helped reduce concerns over oil supplies, leading to a decline in crude prices and improving overall investor sentiment.
Traders are now closely monitoring further developments in US-Iran negotiations, along with signals from the Federal Reserve, which are expected to influence the near-term direction of precious metal prices.
In global markets, gold futures on COMEX gained more than 2 per cent to trade above $4,200 per ounce, while silver jumped over 4 per cent, reflecting strong international demand.
Meanwhile, oil prices moved lower, with US benchmark West Texas Intermediate crude slipping towards $85 a barrel. Brent crude, the global benchmark, also declined as markets assessed the possibility of reduced geopolitical risk in the region.