02 June,2026 04:28 PM IST | Mumbai | mid-day online correspondent
Gold, silver rally amid renewed US-Iran tensions. Representational pic
Gold and silver prices rose strongly on Tuesday as investors moved towards safe-haven assets amid renewed geopolitical uncertainty in West Asia and growing concerns about inflation.
On the Multi Commodity Exchange (MCX), gold futures for August delivery rose by Rs 1,313, or 0.82 per cent, to Rs 1,60,554 per 10 grams. The contract witnessed a business turnover of 8,150 lots, reported PTI.
The rise in domestic gold prices mirrored gains in international markets. In New York, Comex gold futures for August delivery gained USD 63.79, or 1.42 per cent, to trade at USD 4,570.09 per ounce.
As per PTI reports, analysts said investor sentiment became cautious after hopes of a breakthrough in US-Iran peace talks weakened. "Market sentiment had improved on hopes of an imminent US-Iran peace agreement, but turned cautious after another round of military escalation over the weekend," said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, as per the news agency.
As per media reports, Iran has suspended indirect talks with the US and is considering blocking the Strait of Hormuz over alleged ceasefire violations. However, US President Donald Trump said negotiations are continuing and claimed he helped prevent an Israeli strike on Beirut.
Silver prices also recorded strong gains, supported by global market trends and rising investor caution.
On the MCX, silver futures climbed by Rs 5,054, or 1.9 per cent, to Rs 2,71,217 per kilogram, with a business turnover of 10,497 lots.
In overseas markets, Comex silver futures for July delivery rose nearly 3 per cent to USD 77.21 per ounce.
"Silver has recovered from its recent lows as investors adopted a wait-and-see stance ahead of Middle East peace talks," said Renisha Chainani, Head of Research at Augmont, reported the news agency.
Market participants remain cautious as geopolitical developments continue to evolve and the outcome of diplomatic efforts remains uncertain.
Chainani noted that traders had expected a 60-day ceasefire extension over the weekend. However, both sides remained firm on their positions and no agreement was reached, reported PTI.
Investors are watching key upcoming triggers for bullion prices, including the RBI monetary policy decision and US labour market data such as non-farm payrolls and employment reports. These will offer clues on interest rates and global economic health, as reported by the news agency.
Attention is also on US Federal Reserve officials Beth Hammack and Michael Barr. Chainani noted a shift in expectations, saying, "The shift reflects rising energy prices and their likely upward pressure on inflation," as markets now expect rate hikes instead of cuts.
Overall, ongoing geopolitical uncertainty, inflation risks, and central bank policy concerns continue to support gold and silver prices.
(With PTI Inputs)
