Safe-haven metals staged a sharp rebound as easing geopolitical tensions between the United States and Iran lifted investor sentiment, sparking a renewed rally in gold and silver.
Spot gold rose 1.7% to around $4,786.7 per ounce, after briefly surging over 2% to trade above the $4,800 mark. Silver outperformed, rallying more than 5.5% to cross $77 per ounce—its highest level in three weeks.
The rally comes after US President Donald Trump delayed planned strikes on Iranian civilian infrastructure by two weeks, opening the door for diplomatic negotiations. Sentiment improved further as Washington acknowledged a 10-point proposal from Iran as a workable framework, alongside developments such as a conditional reopening of the Strait of Hormuz and reports of a temporary ceasefire accepted by Israel.
However, gold had declined during the war despite being "safe-haven" asset, as the US dollar turned strong on the back of a massive surge in crude oil prices.
Geopolitics Drives Safe-Haven Demand
According to Kotak, the upside in precious metals was largely driven by easing geopolitical risk, which reduced immediate supply-side fears and revived risk appetite across commodities. ETF inflows also remained supportive, with holdings rising by 643 ounces in the last session, extending a five-day accumulation streak, though total holdings remain marginally down 0.5% year-to-date.
While near-term momentum appears bullish, Kotak flagged lingering risks from prior inflation shocks, elevated energy prices and a structurally hawkish stance from global central banks.
ALSO READ: Gold Price Today: MCX Rate Jumps Over Rs 3,000 After US-Iran Ceasefire Deal
Gold Eyes $5,000 Mark
In the international market, COMEX gold is currently trading in the $4,820–$4,860 range, with underlying strength intact despite some consolidation.
A sustained move above $4,900 could accelerate momentum toward the $4,950–$5,000 zone, reinforcing the bullish narrative. However, a break below $4,800 may trigger selling pressure, dragging prices toward $4,750 and potentially $4,650.
On the domestic front, MCX gold has opened with a sharp gap-up and is trading in the Rs 1,53,000–Rs 1,55,000 resistance band. A decisive breakout above Rs 1,55,000 could push prices toward Rs 1,58,000–Rs 1,60,000. Key support is seen at Rs 1,52,000, below which prices may slip toward Rs 1,50,000 and Rs 1,48,000 levels.
Kotak pegged spot gold support at $4,559.4, followed by $4,684.4 and $4,723, while MCX gold June support is seen at Rs 1,37,077, Rs 1,50,600 and Rs 1,51,688.
Silver Strengthens on Dual Demand
Silver, benefiting from both safe-haven and industrial demand, is showing signs of strengthening momentum.
COMEX silver is trading in the $76–$77 range, with a move above $78 likely to push prices toward the $79–$80 zone. On the downside, a break below $76 could lead to declines toward $74–$73, with deeper support at $71–$70.
In India, MCX silver is hovering around Rs 2,42,000–Rs 2,45,000, supported by strong participation and volatility. Resistance is placed at Rs 2,45,000, and a breakout could drive prices toward Rs 2,47,000–Rs 2,50,000. A fall below Rs 2,40,000, however, may accelerate selling toward Rs 2,36,000–Rs 2,34,000.
Ponmudi R, CEO of Enrich Money, noted that the overall bias for silver remains positive amid improving price structure and sustained demand.
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