Gold prices retreated from their one-month high on Wednesday, with COMEX gold trading around $4,841.20 per ounce after hitting an intraday high of $4,895.40/oz and subsequently pulling back from its peak. According to LiveMint, MCX gold opened with a downside gap at ₹1,54,757 and touched an intraday low of ₹1,54,575 within minutes of the Opening Bell. The retreat comes as the US dollar regained some lost ground, reducing the appeal of dollar-denominated commodities. Spot gold had earlier held steady at $4,841.76 per ounce as of 0110 GMT after hitting its highest level since April 8 earlier in the session, while US gold futures for June delivery rose 0.3% to $4,866.50.
Across major Indian cities, Chennai recorded the highest 24-karat gold rate at ₹152,380 per 10 gram, followed by Hyderabad at ₹152,180 per 10 gram and Ahmedabad at ₹152,140 per 10 gram. Mumbai and New Delhi both had 24-karat gold rates at ₹151,940 per 10 gram, while Kolkata recorded the lowest at ₹151,730 per 10 gram. For 22-karat gold, Chennai again led at ₹139,682 per 10 gram, followed by Hyderabad at ₹139,498 per 10 gram and Ahmedabad at ₹139,462 per 10 gram. Kolkata had the lowest 22-karat rate at ₹139,086 per 10 gram.
Gold prices had previously declined sharply on Monday following the breakdown of US-Iran ceasefire negotiations, with gold futures falling over 0.7% to ₹1,51,551 per 10 grams and silver futures dropping more than 2% to ₹2,37,961 per kg. However, recent developments show talks to end the Iran war could resume in Pakistan over the next two days, as US President Donald Trump announced on Tuesday after the collapse of weekend negotiations prompted Washington to impose a blockade on Iranian ports. Oil prices fell and stocks gained on hopes Iran will resume talks with the US and Israel to end the conflict that has shut the Strait of Hormuz. The US Dollar Index hovered near its lowest level in over a month, making dollar-denominated commodities more affordable for holders of other currencies, while US producer prices increased less than expected in March as the cost of services remained unchanged.
Market sentiment has shifted significantly regarding Federal Reserve policy expectations, with traders now seeing a 30% chance of a 25-basis-point US rate cut this year, up from about 13% last week. This represents a notable change from earlier expectations of two cuts for this year before the war began. According to Reuters, before the war, there were expectations of two cuts for this year. The improved rate cut prospects come as surging energy prices because of the war with Iran were fanning inflation pressures, though U.S. producer prices increased less than expected in March as the cost of services was unchanged. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.5% to 954.48 tonnes on Monday.
The precious metals complex showed mixed but generally positive performance, with spot silver rising 0.4% to $79.87 per ounce, platinum gaining 1.1% to $2,127.45, and palladium up 0.1% to $1,596.28. As reported by Reuters, while gold and silver rallied strongly overnight, the broader signal was decisively risk-on rather than defensive positioning, according to analysts at OCBC. This suggests that while safe-haven demand remains present, investors are also positioning for potential economic recovery as geopolitical tensions show signs of resolution.
