Precious metals traded with modest gains during Monday’s session (6 April), as investors awaited more clarity on a potential ceasefire in West Asia, while a strong US dollar and elevated bond yields continued to cap the upside rally.
May silver futures on COMEX rebounded, gaining nearly $1 to reach an intraday high of $73.73 per troy ounce. April gold futures surged $54 to hit an intraday high of $4,733 per troy ounce, partially recovering from Thursday’s $133 crash.
Both gold and silver closed last week with gains of over 4%; however, they remain at sharp discounts to their recent peaks.
Iran and the United States have received a proposal to end hostilities that could come into effect as early as Monday and lead to the reopening of the Strait of Hormuz, Reuters reported, citing sources.
Axios first reported on Sunday that the US, Iran, and regional mediators were discussing a potential 45-day ceasefire as part of a two-phase deal that could ultimately lead to a permanent end to the war, citing US, Israeli, and regional sources.
While hopes of a ceasefire persist, the conflict in West Asia has entered its sixth week, with Israel reportedly bombing the South Pars petrochemical plant at Asaluyeh in Iran. This marks the second major attack by Israel on South Pars facilities.
US President Donald Trump on Sunday intensified his threat to strike Iran’s critical infrastructure if the country does not reopen the Strait of Hormuz by his Monday deadline.
Last week, Trump told US forces would continue to strike Iran “very hard” over the next two to three weeks and push the country “back to the Stone Ages”. He also highlighted the success of US operations, stating that Washington’s objectives have so far been met or exceeded.
The conflict in West Asia is no longer a regional issue; its impact is being felt globally, with disruptions to crude oil supply forcing many economies to shift to alternatives such as coal, raising concerns about emissions.
Gold and silver, which typically witness strong demand during geopolitical tensions, have remained largely subdued since the onset of the conflict, as fears persist that higher crude energy prices could prompt central banks to tighten monetary policy, making these non-yielding assets less attractive.
Additionally, support from central banks has remained muted after significant purchases in recent years. The US Federal Reserve held rates steady last month, and a majority of traders now see no likelihood of rate cuts this year, according to CME’s FedWatch tool.
MCX gold jumps ₹1,700 per 10g; silver reclaims ₹2.36 lakh/kg
In the domestic market, April gold futures on MCX jumped ₹1,710 per 10 grams to hit an intraday high of ₹1,51,300. On Thursday, the yellow metal had crashed ₹4,028 after Trump signalled massive attacks on Iran.
However, the bullion has since recovered ₹21,795 per 10 grams after slipping below ₹1.30 lakh in late March.
Silver prices also regained strength on MCX, surging ₹3,895 per kilogram to reach an intraday high of ₹2,36,390. The white metal has rebounded ₹36,747 from its recent lows.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
