Gold rates remained volatile in early deals on the MCX on Friday (17 April) morning, with focus on emerging signs surrounding a potential US-Iran peace deal. According to Mint reports, the precious metals market continues to reflect the ongoing uncertainty surrounding diplomatic developments between the two nations. The latest trading activity comes after COMEX gold had risen 0.65% to trade near $4,800 per ounce and silver surged nearly 1% to $76.49 per ounce during Asian trading hours on Tuesday, April 14.
The price recovery was supported by diplomatic developments as President Donald Trump indicated that Iranian officials had reached out to his administration expressing willingness to work a deal. As reported by Bloomberg, Iranian President Masoud Pezeshkian was quoted as saying that Tehran remains open to continuing peace negotiations within the bounds of international law. Despite the US initiating a naval blockade of the Strait of Hormuz, these diplomatic overtures have provided some market optimism about potential resolution of the ongoing conflict, with focus now shifting to emerging signs of a possible peace deal.
The precious metals rally was further supported by oil prices slipping below $100 per barrel and equities advancing on Monday, while the dollar index eased by 0.2%. According to Bloomberg reports, the decline in energy prices helped ease some inflationary pressures that have weighed on bullion since the conflict began over six weeks ago. However, US money markets continue to assign less than a 20% probability that the Federal Reserve will cut interest rates by December, reflecting ongoing concerns about economic stability.
Market analysts remain cautious about the sustainability of the current rally. Renisha Chainani, Head - Research at Augmont, noted that both precious metals continue to remain volatile as the ceasefire is fragile, inflation is rising, and ETF flows are mixed. She identified gold resistance at $4,800-4,850 (~ ₹154,000-155,000) with potential upside toward $5,000, while silver faces resistance around $77 (~ ₹246,000) with potential targets of $82 and $87. Ponmudi R, CEO of Enrich Money, emphasized that the structure remains weak with downside risks prevailing, while any recovery faces resistance at higher levels.
