Gold prices rise above Rs 1.51 lakh/10 grams, silver drops around 1% amid hopes of Iran-US war de-escalation

Gold prices rose slightly while silver prices dropped on Wednesday as the dollar weakened amid rising investor expectations that the raging war between Iran and the US-Israel alliance, which has rattled global markets and triggered a sharp rally in oil prices, could finally come to an end.

Gold futures with June expiry on the Multi-Commodity Exchange of India (MCX) gained around Rs 712 per 10 grams (nearly 0.5%) to trade at Rs 1,51,473 per 10 grams. Contracts with August expiry also gained around 0.5% during morning trading hours.

Meanwhile, silver futures with May expiry declined by around Rs 1,300 per kilogram (over 0.5%) to trade at Rs 2,39,604 per kg. Futures contracts with July expiry fell around 0.6%.


In the international market, spot gold rose nearly 1% to $4,700.41 per ounce, marking its highest level since March 20. US gold futures for April delivery, meanwhile, gained more than 1% to $4,729.80. Spot silver was steady at $75.11 per ounce.

US President Donald Trump said the country could end its military attacks on Iran within two to three weeks and that Tehran did not have to make a deal as a prerequisite for the conflict to ease. “We'll be leaving very soon,” Trump told reporters at the White House on Tuesday.

Iranian President Masoud Pezeshkian, meanwhile, said the country had the “necessary will” to end the ongoing war with Israel and the United States, but was seeking guarantees that the conflict would not be repeated.

“We possess the necessary will to end this conflict, provided that essential conditions are met—especially the guarantees required to prevent a repetition of the aggression,” Pezeshkian said in a phone conversation with the president of the European Council, according to a statement from his office, reiterating a key demand of Tehran.

US Secretary of State Marco Rubio said Washington could see the “finish line” in the Iran war, which is now in its fifth week, adding that the United States would have to reexamine ties with NATO after the conflict.

Following these comments, the safe-haven dollar fell, which in turn supported gains in precious metals. Notably, gold fell more than 11% in March, recording its steepest monthly decline since October 2008, amid rising expectations of hawkish monetary policy and the dollar emerging as the preferred safe-haven asset since the onset of the Middle East war.

Despite the bounce, sentiment remains cautious as macro triggers still favour higher interest rates, said Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities. “Overall, gold is likely to stay volatile with limited upside unless clarity emerges on inflation and geopolitics,” the analyst said.

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