Precious metals experienced a significant rally on Wednesday as US spot gold rose $50.90, or 1.14%, to trade at $4,532.95 per ounce and silver climbed $2.284, or 3.10%, to $75.984 per ounce, according to real-time data at 21:36:36 IST. The gains came as bond yields eased slightly and crude oil prices cooled, boosting demand for safe-haven assets amid persistent geopolitical tensions involving the US and Iran. Comex gold futures touched an intraday high of $4,540 and silver futures advanced $1.8 to $76.99 per ounce, despite continued pressure from elevated US Treasury yields and a firm dollar. However, silver still remains nearly 16% below its recent peak of $90 per ounce, highlighting the ongoing pressure from elevated Treasury yields and a firm US dollar.
The precious metals rally occurred as the dollar index retreated sharply from its intraday high to 98.82 but continued to hover near a six-week high, as reported by Live Mint. Benchmark 10-year Treasury yields remained near more-than-one-year highs, which increase the opportunity cost of holding non-yielding gold and make dollar-denominated commodities more expensive for holders of other currencies. Markets remained focused on the ongoing US-Iran conflict and delays in reopening the Strait of Hormuz, which continue to fuel inflation concerns and expectations of tighter global monetary policy. The cooling of crude oil prices provided additional support for precious metals, as reported by NDTV Profit.
Tensions in the Middle East showed no signs of easing after US President Donald Trump warned that the US could resume strikes on Iran within "two or three days" if Tehran failed to accept Washington's peace terms, according to Live Mint. Iran's paramilitary Revolutionary Guard reportedly issued a strongly worded statement on Wednesday, threatening to extend the Middle East conflict "beyond the region" if the US and Israel resume attacks on Tehran. These developments continue to fuel inflation concerns and expectations of tighter global monetary policy, with markets now seeing very limited scope for interest rate cuts through most of 2026.
Tracking international prices, gold futures on MCX rose ₹900 per 10 gram, or 0.57%, to trade above the ₹1.60 lakh mark at 21:38 IST, as reported by NDTV Profit. Earlier in the session, near-month gold futures touched an intraday high of ₹1,60,378 per 10 grams, reclaiming the ₹1.60 lakh mark after remaining below it for the previous three sessions. Silver futures on MCX surged ₹4,069, or 1.51%, with prices trading around ₹2.73 lakh per kilogram, though from its recent peak of ₹3,04,891, the white metal still remains down by ₹28,094 based on today's high. Last week, the yellow metal had closed with a strong gain of 4%.
The release of the Federal Reserve's meeting minutes later in the day is expected to dictate the near-term direction of the market, according to NDTV Profit. Markets now see very limited scope for interest rate cuts through most of 2026, with expectations increasingly shifting toward rates remaining unchanged or even tighter policy later in the year. Kotak Securities stated that near-term downside pressure may persist if Treasury yields and the dollar remain elevated, though geopolitical risks, sticky inflation, and disruptions in energy markets are expected to provide strong underlying support for bullion prices. Investors are now awaiting these minutes for further cues on the interest rate outlook and bullion demand trajectory.
