Gold and Silver Prices Rise on MCX as Investors Track US-Iran Peace Deal Developments

Gold and silver prices in India opened sharply higher on the Multi Commodity Exchange (MCX) on Friday, supported by strong buying as investors monitored developments related to a potential US-Iran peace agreement. 

MCX Gold and Silver Prices Trading Higher 

MCX gold for August futures contracts opened higher by ₹1,663, or 1.11%, at ₹1,50,595 per 10 grams compared with the previous close of ₹1,48,932. As of 1:15 PM, gold price was trading at around ₹1,49,725 per 10 grams. 

MCX silver for July futures contracts opened higher by ₹3,123, or 1.30%, at ₹2,42,776 per kg compared with the previous close of ₹2,39,653. As of 1:15 PM, silver price was trading at around ₹2,40,900 per kg. 

International Gold and Silver Prices 

In the international market, spot gold declined 0.5% to $4,191.17 per ounce and was on track for a weekly decline of 3.2%. US gold futures for August delivery traded at $4,212.70 per ounce, while spot silver prices fell 0.4% to $67.10 per ounce. 

On Thursday, gold prices touched an over 6-month low before closing higher at $4,219.69 per ounce after US President Donald Trump called off planned military strikes on Iran and indicated that a peace agreement could be reached soon. 

US-Iran Developments and Gold Prices 

Donald Trump said the US and Iran could sign a peace agreement as early as this weekend that could reopen the Strait of Hormuz to shipping. However, Iran stated that it had not reached a final decision on the proposed agreement. 

Gold prices have declined about 20% since the Iran conflict began as concerns over higher inflation and elevated energy costs increased expectations of a US Federal Reserve interest rate hike, raising the opportunity cost of holding the non-yielding metal. 

Inflation and ETF Holdings Remain in Focus 

Market participants are also tracking US inflation data and interest rate expectations. US producer prices increased more than expected in May, recording the largest annual increase in 3.5 years. Meanwhile, holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, declined around 0.3% to 923.89 metric tonnes on Wednesday. 

Conclusion 

Gold and silver prices traded higher on MCX as investors tracked geopolitical developments and potential progress in US-Iran peace negotiations. Market participants also remained focused on US inflation data and interest rate expectations, which continue to influence precious metal prices. 

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