Gold and silver prices experienced fluctuations on Tuesday due to geopolitical tensions triggered by US President Donald Trump’s recent remarks on Iran. On the Multi Commodity Exchange (MCX), gold futures for June 5 were trading at Rs 1,50,228, showing a slight increase of Rs 247 or 0.16% by 11:35 am. The yellow metal saw intraday gains of up to 0.32% or Rs 493 to reach Rs 1,50,474, after initially trading lower at Rs 1,49,625.
Similarly, silver futures for May 5 were up by 0.48% or Rs 1,121 at Rs 2,34,500. The white metal surged nearly 1% or Rs 2,168 to hit an intraday high of Rs 2,35,547, following a previous decline to an intraday low of Rs 2,31,800. Analysts noted that despite the tensions, precious metals did not exhibit strong safe-haven characteristics.
In the international market, precious metals were trading steadily. COMEX gold was at $4,681.34, down $3.36 or 0.07%, while COMEX silver stood at $72.94, up $0.09 or 0.13%. Spot gold was priced at $4,653, showing a rise of $3 or 0.06%, and spot silver traded at $72.78, down $0.02 or 0.04%.
The volatility in precious metals is attributed to the growing uncertainty as traders and investors respond to US President Donald Trump’s ultimatum to Iran regarding the Strait of Hormuz. Iran expressed its desire for a lasting resolution with the US and Israel while resisting pressure to reopen the Strait. Trump cautioned that failure to comply could lead to severe consequences for Iran.
Additionally, crude oil prices surged significantly, with Brent crude futures climbing by as much as 1.69% or $1.86 to $111.63, and US WTI crude futures rising over 3% or $4.15 to $116.56.
