MCX Gold Up Over 1%, Silver Prices Surge 4% After Iran Frees Hormuz Movement

Gold and silver prices surged on the Multi Commodity Exchange on Friday, even as crude oil plunged more than 11% after Iran signalled that the Strait of Hormuz would remain open for commercial shipping.

Gold futures on the Multi Commodity Exchange extended gains in late trade, with the June 2026 contract rising 1.14%, or Rs 1,748, to Rs 1,54,900 per 10 grams as of 7:21 PM IST on Friday, according to MCX data.

The contract traded near the day's upper range of Rs 1,55,500, reflecting sustained investor demand despite easing geopolitical tensions after Iran signalled that the Strait of Hormuz would remain open for commercial shipping.

Also Read: Strait Of Hormuz Opens After Five Weeks; Brent Slumps, Wall Street Rallies

At the same time, MCX silver jumped 3.89%, or Rs 9,672, to Rs 2,58,300 per kilogram, making it one of the sharpest single-session gains in recent weeks. International silver prices rose 4.2% to $82.03 an ounce, outperforming gold and platinum across the precious metals complex.

The gains came despite expectations that easing geopolitical tensions in the Gulf would normally reduce demand for safe-haven assets such as gold.

Analysts said the reopening of Hormuz has not removed uncertainty entirely, but shifted investor focus toward lower inflation, weaker US dollar expectations and the possibility of lower interest rates.

Falling crude prices are expected to ease inflationary pressures in the US, which could strengthen the case for the Federal Reserve to cut rates. Lower real interest rates tend to support gold because the metal does not offer any yield.

Also Read: US Stock Market Today: S&P 500, Nasdaq Rally As Iran Opens Hormuz; Dow Soars 600 Points

Silver, however, outperformed because of its stronger industrial linkages. Analysts said the sharp fall in oil prices could reduce manufacturing and transport costs, supporting demand from sectors such as solar panels, electronics and electric vehicles.

Despite the easing in war risk, investors remain cautious because the ceasefire is temporary and unresolved issues such as uranium enrichment and long-term control over Hormuz continue to cloud the outlook.

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