Gold and Silver Prices Surge Amid Geopolitical Tensions
Market Update on Precious Metals
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Mumbai, May 8: On Friday, gold and silver prices experienced an upward trend due to escalating geopolitical tensions between the United States and Iran, with precious metals increasing by as much as 1 percent.
Gold futures for June 5 on the Multi Commodity Exchange (MCX) commenced at Rs 1,52,672 per 10 grams, reflecting an increase of Rs 411 from the previous closing price of Rs 1,52,261.
By around 12:20 pm, the price of gold had risen by Rs 592, or 0.38 percent, reaching Rs 1,52,853 per 10 grams. During the trading session, it peaked at Rs 1,53,103, marking an increase of Rs 842 or 0.55 percent.
In contrast, silver futures for July 3 opened at Rs 2,59,999 per kg, up from the previous close of Rs 2,58,540, which is a gain of Rs 1,459 or 0.56 percent.
The price of silver was trading at Rs 2,61,666 per kg, up Rs 3,126 or 1.21 percent. It reached an intraday high of Rs 2,62,723, an increase of Rs 4,183 or 1.61 percent.
Experts in the commodity market noted that MCX gold is showing positive momentum after starting above the Rs 1,52,000 threshold.
Analysts indicated that if gold maintains a position above Rs 1,53,000, it could bolster bullish sentiment and drive prices towards the Rs 1,55,000 to Rs 1,56,000 range. Immediate support for gold is identified between Rs 1,52,000 and Rs 1,51,600, with stronger buying interest emerging near Rs 1,50,000.
For silver, prices have remained robust after opening above the Rs 2,60,000 mark. A significant breakout above the resistance zone of Rs 2,64,000 to Rs 2,66,000 could lead to a rally towards Rs 2,72,000 to Rs 2,75,000, while support is noted around Rs 2,56,000.
Internationally, precious metals also saw gains, with COMEX gold trading 0.28 percent higher at $1,725 per ounce, and COMEX silver rising 0.17 percent to $30 per ounce.
The increase in precious metals prices is attributed to renewed tensions in West Asia, following Iran's accusations against the US for breaching a ceasefire agreement, while the US defended its actions as retaliatory after alleged attacks on American naval vessels in the Strait.
Iran's military reported that US forces targeted an Iranian oil tanker, along with other vessels and civilian areas in the Strait and on Iranian territory.
Meanwhile, US President Donald Trump stated that the ceasefire remains intact and that the US is awaiting Tehran's response to its latest peace proposal.
Additionally, Brent crude oil prices increased by 2.82 percent to $72.89 per barrel, while US West Texas Intermediate (WTI) crude rose by 4 percent to $64.64 per barrel.