Gold and silver prices experienced significant volatility on Friday, April 17, amid emerging signs of a potential US-Iran peace deal. According to reports from Live Mint, MCX gold June futures were 0.04% down at ₹1,53,086 per 10 grams around 9:15 am, while MCX silver May contracts were 0.34% up at ₹2,49,469 per kg at the same time. The precious metals market showed mixed signals as investors weighed the potential diplomatic developments against broader market factors. Recent analysis shows spot gold traded between $2,340 and $2,380 per ounce for five consecutive sessions, maintaining a narrow trading range as market participants closely monitored diplomatic progress. In international markets, spot gold was unchanged at $4,789.67 per ounce as of 0229 GMT, but was up 0.9% for the week, while spot silver slipped 0.2% to $78.26 per ounce. However, gold futures climbed 0.7% to $4,857.05 per ounce at 09:21 GMT during Asian trading, with XAU/USD rising 0.9% to $4,835.09 per ounce, reflecting the metal's strength near a nearly one-month high.
International gold prices were positioned for a fourth consecutive weekly gain, supported by hopes for a US-Iran peace deal that could ease geopolitical tensions. As reported by Live Mint, the US dollar fell to a six-week low in the previous session, making the greenback-backed yellow metal cheaper for overseas buyers. Market expectations point to the US Federal Reserve pausing interest rates this month, with the Federal Open Market Committee meeting scheduled for April 28-29. However, the CBOE Gold Volatility Index declined 12% from its monthly peak, reflecting decreased demand for gold as a geopolitical hedge as diplomatic channels show tangible progress. Recent developments include a 10-day ceasefire between Lebanon and Israel that took effect on Thursday, and US President Donald Trump indicating that the next round of talks between the United States and Iran could take place over the weekend. Trump's comments came alongside reports that the US is sending thousands of additional service members to Iran and that a naval blockade of the country came into full effect this week, though the market's immediate reaction suggests the ceasefire appears to be holding.
Energy market dynamics exerted countervailing pressure on gold's potential gains despite geopolitical support. Brent crude oil prices sustained levels above $92 per barrel throughout the reporting period, maintaining inflationary pressures that influence central bank policies and non-yielding assets like gold. Recent Consumer Price Index data confirms this dynamic, with the Eurozone reporting core inflation at 2.8% year-over-year and the United States recording 3.1%—both figures exceeding central bank targets. The relationship between oil prices and gold manifests through multiple transmission channels, including inflation expectations, real yields, and currency effects that influence dollar strength. Earlier fears that rising energy prices could fuel inflation and keep global interest rates elevated had weighed on gold, with prices falling more than 8% since the Iran conflict began in late February. Despite the positive geopolitical developments, gold is advancing amid a ninth straight session of dollar weakness, with pressure on the US currency reinforced by weak producer inflation data released earlier in the week.
Other precious metals joined the rally on the broadly positive geopolitical tone, with spot silver gaining 2.4% to $80.8165 per ounce and spot platinum climbing 1.6% to $2,147.21 per ounce. Both instruments remain near monthly highs, reinforcing the signal that demand for metals is supported by broader shifts in market sentiment rather than a single factor. The rally is being driven by several factors: increased risk appetite and easing concerns about persistent inflation. With reduced demand for safe-haven assets, the dollar has lost support, traditionally positive for precious metals. LME copper futures rose 0.5% to $13,350.33 per tonne and COMEX copper futures gained 0.8% to $6.1250 per pound after China's GDP data beat expectations, with the economy growing 5% in the first quarter driven mainly by exports. However, risks linger as China's economy could face headwinds from the Iran conflict, with higher fuel costs potentially weighing on domestic spending and disruptions to global shipping hurting export demand.
According to Live Mint reports, 24 karat gold rates varied across major cities with Mumbai showing ₹153,090 per 10 grams, Delhi at ₹152,890, and Chennai at ₹153,460. 22 karat gold rates ranged from ₹140,149 in Delhi to ₹140,672 in Chennai. Silver 999 fine rates were highest in Chennai at ₹251,580 per kg, followed by Kolkata at ₹250,470 and Bengaluru at ₹251,000. On the domestic front, MCX gold has support at ₹1,52,500 to ₹1,51,100 and resistance at ₹1,54,200 to ₹1,55,000, while MCX silver is seen finding support at ₹2,45,500 to ₹2,42,000, with resistance in the ₹2,51,500 to ₹2,55,000 range. Standard gold (22 carat) prices in Delhi stand at ₹1,14,208/8 grams while pure gold (24 carat) prices stand at ₹1,24,584/8 grams. Standard gold (22 carat) prices in Mumbai stand at ₹1,14,088/8 grams while pure gold (24 carat) prices stand at ₹1,24,464/8 grams.
Market experts provide strategic guidance for precious metals trading amid current volatility. Manoj Kumar Jain of Prithvi Finmart expects gold and silver to remain supported at key levels in the near term, with silver holding support at $68 per troy ounce and gold seen holding above $4,680 per troy ounce on a closing basis this week. He noted that both metals could remain volatile due to fluctuations in the dollar index, movement in crude oil prices and the possibility of a second round of US-Iran peace talks. For gold, immediate support is placed in the $4,774 to $4,740 range, with resistance seen at $4,840 to $4,884 per troy ounce, while silver has support between $76.60 and $74.00, with resistance pegged at $80.40 to $82.80 per troy ounce. Jain recommends a buy-on-dips strategy for both metals, suggesting gold accumulation on declines as long as prices hold above ₹1,48,800 with upside targets of ₹1,55,000 to ₹1,57,000, and silver buying on dips while prices stay above ₹2,41,000, targeting ₹2,55,000 to ₹2,61,000. As long as the US dollar remains under pressure, there is scope for further support for XAU/USD, with traders remaining glued to any geopolitical headlines that could influence precious metals demand.
