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Tue, 15 Sept 2026
11:56:03 am
Tue, 15 Sept 2026
11:56:03 am
Rudransh Sangwan
Published at: May 6, 2026, 5:01 AM
Synopsis
Gold and silver prices surged sharply as optimism around possible US-Iran peace talks and falling crude oil prices boosted investor sentiment. MCX silver jumped nearly ₹7,700 per kilogram, while gold gained over ₹2,500 per 10 grams amid a weaker dollar and easing inflation concerns. Analysts expect volatility to remain high as markets continue tracking geopolitical developments, oil prices, and US economic data.
Gold and silver prices witnessed a sharp rally on Wednesday as easing geopolitical tensions, a weaker US dollar, and cooling crude oil prices triggered strong buying interest across precious metals. Silver emerged as the biggest mover, jumping more than ₹7,700 per kilogram on the Multi Commodity Exchange, while gold surged over ₹2,500 per 10 grams.
The rally reflects a major shift in market sentiment. Investors are now balancing expectations of lower inflation and softer interest rate pressure against lingering uncertainty surrounding the US-Iran conflict. The key question is whether this marks the beginning of another major bull run in precious metals or just a short term relief rally.
| Commodity | Current Price | Change |
|---|---|---|
| MCX Silver July Futures | ₹2,52,000/kg | +₹7,684 |
| MCX Gold June Futures | ₹1,52,182/10 gm | +₹2,429 |
| Spot Gold | $4,633/oz | +1.7% |
| Spot Silver | $74.80/oz | +2.7% |
Data suggests falling oil prices reduced inflation fears This leads to expectations of softer monetary tightening Which results in increased buying in precious metals
Markets reacted positively after indications emerged that negotiations between the US and Iran may be progressing. Comments from Donald Trump regarding a pause in operations near the Strait of Hormuz boosted hopes of reduced geopolitical risk.
Lower geopolitical stress generally supports risk appetite, but it also weakens the dollar and shifts capital toward metals during periods of uncertainty.
A softer dollar made gold and silver cheaper for global buyers, increasing demand across international markets.
| Market Driver | Impact on Metals |
|---|---|
| Weak Dollar | Positive |
| Falling Oil Prices | Positive |
| Lower Inflation Expectations | Positive |
| Reduced Rate Hike Fear | Positive |
Crude oil prices dipped below $110 per barrel after fears of prolonged supply disruption eased slightly.
Lower oil prices help reduce inflation concerns, which may eventually ease pressure on central banks to keep interest rates elevated.
Silver significantly outperformed gold during the rally.
| Commodity | Percentage Gain |
|---|---|
| Silver | 3.1% |
| Gold | 1.7% |
This reflects stronger speculative participation in silver, which tends to move more aggressively during periods of improving sentiment.
One key factor supporting silver is industrial demand.
Silver benefits from usage in
Unlike gold, silver has both investment and industrial demand, making rallies sharper during economic recovery expectations.
Many investors assume gold and silver only rise during fear driven environments.
This is incomplete.
Precious metals can also rally when
While the rally looks strong, volatility remains elevated due to uncertainty around the Middle East conflict and upcoming US economic data.
If peace talks fail or oil prices rebound sharply
| Support | Resistance |
|---|---|
| ₹1,49,100 | ₹1,50,500 |
| ₹1,48,400 | ₹1,51,800 |
| Support | Resistance |
|---|---|
| ₹2,41,400 | ₹2,48,000 |
| ₹2,38,800 | ₹2,51,500 |
| City | 22 Carat Gold | 24 Carat Gold |
|---|---|---|
| Delhi | ₹1,09,512 | ₹1,19,376 |
| Mumbai | ₹1,09,392 | ₹1,19,336 |
| Chennai | ₹1,11,552 | ₹1,20,608 |
| Hyderabad | ₹1,09,392 | ₹1,19,336 |
| Scenario | Impact on Gold & Silver |
|---|---|
| Successful peace deal | Short term consolidation |
| Oil prices fall further | Positive |
| Dollar weakens more | Bullish |
| Conflict escalates again | Extreme volatility |
The next major trigger will likely come from US economic data and developments around Iran negotiations.
The sharp rally in gold and silver reflects improving global sentiment, easing inflation concerns, and renewed investor interest in precious metals. While silver is currently outperforming due to stronger speculative and industrial demand, both metals remain highly sensitive to geopolitical developments and central bank expectations. Investors should remain cautious, as volatility is likely to stay elevated in the near term.
Silver gained more due to stronger speculative activity and its additional industrial demand exposure.
Lower oil prices reduce inflation fears, which can ease pressure on interest rates and support precious metals.
It is too early to confirm. The trend will depend on geopolitical developments, dollar movement, and interest rate expectations.
Financial journalist specializing in market analysis, stock research, and investment trends. Dedicated to providing accurate, timely insights for informed decision-making.
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