Comex gold futures rallied by $38 per troy ounce to an intraday high of $4,861, while silver futures surged $1.64 to the day's high of $81 on Thursday, April 16. According to reports from LiveMint, the precious metals rally was driven by growing optimism that the US and Iran could engage in a second round of negotiations that could end the month-long conflict in West Asia. A softer US dollar also supported precious metals, as it hovered near its lowest level in six weeks, making greenback-denominated commodities more affordable for holders of other currencies.
In the domestic market, the near-month gold futures contract on MCX gained ₹1,042, reaching a day's high of ₹1,54,990 per 10 grams. As reported by LiveMint, the yellow metal has ended the last three weeks higher, helping it recover ₹25,203 from its March lows. Despite the strong recovery, the metal is still ₹25,789 below its record high of ₹1,80,779, attained in late January. Silver contracts were also gained marginally by ₹3,993 per kilogram to ₹2,55,735, with the white metal recovering ₹56,092 from its March lows. Earlier this week, the white metal reached nearly a one-month high, supported by a ₹12,000 jump in Tuesday's session - the biggest intraday jump since early February.
According to LiveMint reports, gold and silver prices had fallen 10% and 20%, respectively, in March amid concerns that elevated energy prices could fuel inflation and keep global interest rates higher. However, those worries have eased somewhat amid growing hopes of resumed negotiations after the first round collapsed over the weekend. The rally has helped the white metal recover ₹56,092 from its March lows, yet the highly volatile metal is still down by ₹1,64,313 from its record peak of ₹4,20,048. Bullion, which does not yield interest, tends to perform better in a low-interest-rate environment. This has also pushed crude oil prices lower, easing concerns over energy-led inflation and improving the outlook for US Federal Reserve rate cuts.
As reported by LiveMint, the US has signalled the possibility of further talks with Iran, although no decision has yet been made on whether to resume negotiations. US President Donald Trump earlier indicated that Washington could still reach a deal with Tehran. Reports suggest that Washington and Tehran are considering extending their two-week ceasefire to allow more time for talks, even as the Strait of Hormuz remains effectively closed under a dual blockade. Trump also said that leaders from Israel and Lebanon would speak on Thursday about halting the fighting between Israel and the Iran-backed militant group Hezbollah in Lebanon. Leaders from both sides have not met directly in more than 30 years, as reported by AP.
According to LiveMint reports, the US naval blockade of Iranian ports continued, with US Treasury Secretary Scott Bessent stating that the Trump administration would intensify economic pressure on Iran through new sanctions on countries doing business with it, calling the move the "financial equivalent" of a bombing campaign. The easing of inflation worries has contributed to positive market sentiment for bullion, with crude oil prices lowering, easing concerns over energy-led inflation and improving the outlook for US Federal Reserve rate cuts. This has pushed crude oil prices lower, easing concerns over energy-led inflation and improving the outlook for US Federal Reserve rate cuts.
