Gold, silver edge higher on hopes of West Asia de-escalation

MUMBAI — Gold and silver prices rose on Thursday even after US President Donald Trump's remarks on easing geopolitical tensions and the opening of the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), gold futures (June 5 contract) climbed as much as 0.67 per cent or INR 1,042 to hit an intraday high of INR 1,54,990 by 10.57 a.m.

Silver futures also jumped up to 1.58 per cent or INR 3,993 to INR 2,55,735, logging an intraday high.

The yellow metal was trading at INR 1,54,911, up INR 963 or 0.63 per cent, after touching an intraday low of INR 1,54,501, up 0.35 per cent or INR 553. The white metal was trading at INR 2,54,997, up INR 3,255 or 1.3 per cent, after hitting an intraday low of INR 2,53,720, up 0.78 per cent or INR 1,978.

The surge in precious metals comes after Trump hinted at hopes of an end to the West Asia conflict.

Also read: Gold holds steady amid easing US-Iran tensions; silver gains on MCX

According to commodities experts, sentiment remains mildly positive, with macroeconomic factors offering support, although momentum is still developing and would require confirmation for a sustained uptrend.

"Gold is trading in the INR 1,54,500–INR 1,55,000 range with buying interest at lower levels. A sustained move above INR 1,55,000 could revive momentum towards INR 1,57,000–INR 1,58,000, while a break below INR 1,54,000 may lead to a correction towards INR 1,52,000–INR 1,51,000 and further to INR 1,48,000," a commodity expert said

For silver, the analysts noted that MCX silver is hovering above INR 2,54,000, supported by safe-haven demand and strength in industrial metals. Resistance is seen at INR 2,60,000–INR 2,63,000, with upside potential towards INR 2,68,000–INR 2,70,000.

On the downside, a break below INR 2,50,000 may lead to a correction towards INR 2,44,000–INR 2,40,000, they added.