Mumbai, June 12: Amid ongoing conflict in the Middle East, hopes for a peace agreement have led to a nearly 1% increase in gold and silver prices on the Multi Commodity Exchange of India (MCX) on Friday. This uptick followed U.S. President Donald Trump’s announcement that Washington has reached a significant deal with Iran, pending only the finalization of documents. Signatures on the agreement are expected in the coming days.
The impact of this news was evident in both the stock and commodity markets. During early trading on Friday, gold for August delivery rose nearly 1%, reaching a high of ₹150,600 per 10 grams. Similarly, silver for July delivery surged over 1%, hitting ₹244,817 per kilogram.
At the start of trading, August futures for gold opened at ₹150,595 per 10 grams, up ₹1,663 from the previous close of ₹148,932. Meanwhile, July futures for silver opened at ₹242,776 per kilogram, gaining ₹3,123 from its previous close of ₹239,653.
As of noon (around 12:18 PM), gold for August delivery was trading at ₹149,700 per 10 grams, reflecting a gain of 0.52% or ₹768. Silver for July delivery was priced at ₹241,500 per kilogram, up 0.77% or ₹1,847.
According to the Indian Bullion and Jewelers Association (IBJA), the price of 999 purity gold stood at ₹147,609 per 10 grams, while 999 purity silver was priced at ₹242,295 per kilogram.
Recent developments and statements from the U.S. President have made the prospects of a peace agreement between the U.S. and Iran appear promising. However, the market awaits concrete news related to this matter.
A market expert noted that the significant improvement in global risk sentiment, following news of reduced tensions between the U.S. and Iran, has led to gains in both the Indian equity and commodity markets.
The expert highlighted that MCX gold began trading with a gap-up and has remained above the psychological level of ₹150,000. This indicates a strengthening trend in prices and buying interest amidst ongoing fluctuations.
Technically, for market sentiment to strengthen further, gold needs to stay above ₹152,000. If this level is decisively breached, prices could rise to the range of ₹155,000 to ₹156,000.
Conversely, if gold slips below the support zone of ₹150,000 to ₹149,000, selling pressure may increase, potentially driving prices down to ₹147,000 to ₹145,000.
Additionally, the expert mentioned that MCX silver also started with a gap-up and has surpassed the ₹240,000 level. This reflects an improvement in market sentiment and gradual price recovery. The upper resistance range remains between ₹248,000 and ₹251,000. If silver can maintain levels above this zone, further price increases could see it reach ₹258,000 to ₹262,000.
However, if silver falls below the support level of ₹240,000, selling could intensify, bringing prices down to the range of ₹234,000 to ₹230,000. Currently, silver’s short-term outlook remains cautious but slightly positive, influenced by geopolitical tensions, demand for safe-haven investments, and fluctuations in global markets.
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