Precious metals witnessed renewed buying in Wednesday’s trade, amid growing expectations of a de-escalation in the Iran conflict and potential negotiations between the United States and Iran, even as strikes across West Asia continued to widen.
May silver futures on COMEX rebounded on 25 March, gaining $5.23 to reach an intraday high of $74 per troy ounce, while April gold futures surged $199 to hit an intraday high of $4,601 per troy ounce. The recovery in both metals marked the biggest single-day spike since February.
Safe-haven assets, which had largely been ignored by investors since the beginning of the US-Iran conflict amid fears that higher energy prices could prompt central banks to raise interest rates, have recently seen renewed interest following US President Donald Trump’s remarks suggesting a potential end to the war.
Trump said on Tuesday that the US and Iran are “in negotiations right now” and indicated that Tehran is keen to strike a peace deal, even as Iran has reportedly denied being in direct talks with Washington.
Speaking in the Oval Office on Tuesday, Trump said he decided to hold back from his recent threat to order strikes on Iranian energy infrastructure “based on the fact we’re negotiating”.
Later on Tuesday, The New York Times, citing two unnamed officials, reported that the US has sent Iran a 15-point plan to end the war. Israel’s Channel 12, quoting three sources, said the US is seeking a month-long ceasefire to discuss the proposal.
News of the proposed plan comes days after Trump signalled a pause in strikes on Iran’s energy infrastructure, citing “very good and productive” talks with Tehran — a move that had pushed all three major US indices up by around 1% on Monday.
Even as Trump raised hopes of de-escalation, at least 1,000 troops from the 82nd Airborne Division are expected to be deployed to the Middle East in the coming days, according to The Associated Press, citing sources familiar with the matter.
Meanwhile, Iran launched fresh attacks on Israel and Gulf Arab countries, including an assault that reportedly sparked a major fire at Kuwait International Airport. The Israeli military also said on Wednesday afternoon that it had carried out several waves of airstrikes in Tehran, keeping tensions elevated and supporting oil prices.
Higher oil prices have reduced the likelihood of US Federal Reserve rate cuts this year, with traders fearing that if energy prices remain elevated in the coming months, the central bank may even consider rate hikes to contain inflationary pressures.
These concerns have already been reflected in bond markets, with US Treasury yields rising, making non-yielding bullion less attractive to investors.
MCX gold jumps over ₹6,200 per 10g; silver reclaims ₹2.37 lakh per kg
In the domestic market, April ₹6,282 per 10 grams”>gold futures on MCX jumped ₹6,282 per 10 grams to hit an intraday high of ₹1,45,194. Silver prices on MCX surged by ₹13,409 per kilogram to reach an intraday high of ₹2,37,350, marking the biggest single-day spike since February 27, when prices had jumped ₹22,975.
If the gains hold through the close, it would snap a nine-session losing streak, during which the white metal had shed nearly ₹54,000.
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