Gold and silver gained over 1% on Wednesday, 22 April, as safe-haven demand strengthened after US President Donald Trump extended the ceasefire with Iran until Tehran presents a new proposal and negotiations are concluded.
COMEX gold futures rebounded by $70 per troy ounce to an intraday high of $4,790, recouping part of the $109 loss recorded in the previous session. Silver futures also jumped $2.14 to $78.63, recovering over half of the $3.55 decline in the prior session.
Donald Trump said in a statement on social media that the US had agreed to a request by Pakistani mediators “to hold our attack on the country of Iran until such time as their leaders and representatives can come up with a unified proposal … and discussions are concluded, one way or the other.”
Trump’s announcement struck a markedly different tone from his earlier comments. Earlier this week, he said it was “highly unlikely” he would extend the two-week truce if an agreement was not reached before it expired and also threatened to destroy Iran’s power plants and bridges if negotiations fail.
Although Trump extended the ceasefire, it remains unclear whether Iran will agree to join a second round of peace talks this week.
Recent media reports indicate that Vice President JD Vance cancelled a planned trip to Islamabad for talks after Tehran informed the US via Pakistan that it would not take part in the meeting.
Meanwhile, Iran reportedly seized two ships in the Strait of Hormuz on Wednesday, tightening its grip on the strategic waterway after Trump said the US would maintain its blockade of the country even after extending the ceasefire.
Higher energy prices can push inflation higher. While gold is traditionally considered a hedge against inflation, higher interest rates make yield-bearing assets more attractive, weighing on bullion’s appeal.
Precious metals have concluded the past three weeks on a positive note as hopes of de-escalation strengthened. With prices extending gains today following the latest ceasefire extension, traders appear willing to remain optimistic, but the sustainability of this trend will depend on how developments unfold in the near term.
On the other hand, Kevin Warsh, Trump’s nominee to lead the Federal Reserve, said the central bank needs a new framework to deal with persistent inflation, though he did not offer specifics. He also said the US president has not asked him to commit to any particular rate decisions.
MCX gold rebounds ₹2,000; silver reclaims ₹2.50 lakh mark
Tracking gains in the international market, near-term gold futures on MCX rose ₹2,028 per 10 grams to hit the day’s high of ₹1,53,699. The silver futures contract on MCX also regained strength, surging ₹6,000 per kilogram to reach an intraday high of ₹2,50,698.
Both gold and silver had closed Tuesday’s session with sharp losses, falling ₹2,272 and ₹7,844, respectively. Amid heightened volatility and a barrage of headlines, both metals have risen by up to 3% so far in April.
(With inputs from Reuters)
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