Precious metals extended their winning streak to a fifth consecutive session on Tuesday, 12 May, driven by optimism surrounding a potential US-Iran peace agreement and a softer US dollar. According to latest reports from LiveMint, MCX gold price advanced 0.3% to ₹1,54,150 per 10 grams, while MCX silver rate advanced 1.5% to ₹2,82,463 per kg. Spot silver rose 0.2% to $86.27 per ounce after surging more than 7% in the previous session, marking its strongest rally in over a month. Spot gold also advanced 0.5% to $4,757.59 per ounce by 0050 GMT, while US gold futures for June delivery rose 0.8% to $4,768.20. The stronger-than-expected US jobs report reinforced expectations that the Federal Reserve could keep interest rates elevated for longer, though gold prices largely shrugged off the data as traders remained focused on Middle East developments.
The latest US employment data showed US employment increased more than expected in April, while the unemployment rate remained steady at 4.3%, indicating continued resilience in the labour market. As reported by LiveMint, although hiring slowed from March levels, the increase was still nearly double economists' expectations. The solid payrolls report overshadowed separate data showing that consumer sentiment fell to a record low amid concerns about inflation's impact on personal finances and buying conditions. The stronger-than-expected jobs report reinforced expectations that the Federal Reserve could keep interest rates elevated for longer.
On the geopolitical front, Trump intensified market anxiety after calling Iran's response to a recent US peace proposal "a piece of garbage," while also describing the ceasefire efforts as being on "massive life support." His remarks suggested that negotiations between Washington and Tehran remained far from resolution. Iran has still not indicated whether it will accept President Donald Trump's proposal sent on Wednesday, which reportedly includes reopening the Strait of Hormuz in exchange for the US ending a blockade on ports. Axios and several other media outlets reported earlier this week that the two countries were nearing a 14-point memorandum of understanding aimed at ending the war and resuming talks over Iran's nuclear programme. Markets are also tracking Trump's upcoming two-day visit to China, where he is expected to meet Xi Jinping to discuss trade relations, geopolitical tensions and the evolving Middle East crisis.
In the domestic market, MCX silver rate advanced 1.5% to ₹2,82,463 per kg, while MCX gold price advanced 0.3% to ₹1,54,150 per 10 grams. However, from its record high of ₹1,80,779, gold prices are still down by ₹27,339. Gold and silver prices have fallen by more than 10% each since the conflict erupted, as the near-closure of the Strait of Hormuz and the resulting spike in energy prices have fuelled concerns about rising inflation and the possibility of interest rates remaining elevated for longer. Among other precious metals, platinum slipped 0.2% to $2,127, while palladium declined 0.2% to $1,506.34 per ounce.
Renisha Chainani, Head - Research at Augmont, noted that Silver has been ranging between $71–$82 (approximately ₹235K– ₹265K), and similarly, having touched the top of its range, a reversion toward support levels is likely in the near term. For Gold, she said "Gold has been trading within a $4,500–$4,750 range (approximately ₹148K– ₹154K). Having tested the upper boundary last week, profit-booking pressure may push prices back toward the lower end this week." A softer dollar and easing bond yields further supported bullion prices, with gold typically benefiting when the greenback weakens because it becomes cheaper for overseas buyers. Lower bond yields also improve the appeal of non-interest-bearing assets such as gold. Markets are also tracking Trump's upcoming two-day visit to China, where he is expected to meet Xi Jinping to discuss trade relations, geopolitical tensions and the evolving Middle East crisis.
