Gold prices staged a significant recovery on Thursday, with spot gold rising 1.5% to $4,322.41 per ounce by 0102 GMT, recouping losses from the previous session's sharp decline. According to Reuters, this recovery came after gold had fallen over 2% to $4,241.94 per ounce on Wednesday following the U.S. Federal Reserve's decision to hold rates steady in the 3.5% to 3.75% range. The Fed's quarterly projection showed that nine out of 18 Fed officials are factoring in at least one rate cut by the end of this calendar year, triggering the initial selloff. However, the recovery was supported by oil prices falling after the US and Iran signed an interim agreement to end their war, providing some relief to precious metals markets. Latest trading data shows international spot gold trading 1.14% lower to $4,331.40 per ounce over the last 24 hours in early Comex trade, with domestic spot gold ending Tuesday's session at ₹1,49,738 per 10 grams of 24-karat purity.
Silver experienced a strong recovery, rising 2.2% to $69.51 per ounce, significantly outperforming gold's gains as the precious metals selloff reversed. According to Reuters, this represents a sharp turnaround from silver's earlier decline of 4.5% to $66.8 per ounce that had hit multi-month lows. The plunge in precious metals had been triggered by the FOMC's quarterly projection showing expectations of rate hikes, with the sharp decline reflecting investor concerns about the potential impact of higher interest rates on non-yielding assets. However, the recovery in both gold and silver prices suggests that markets are now pricing in the geopolitical developments more favorably than the earlier Fed-driven selloff. Latest Comex trade data shows silver edging 2.66% down to $68.88 per ounce over the last 24 hours, while domestic silver futures for the July contract traded 0.09% up to ₹2,52,046 per kilogram.
The recovery in precious metals was significantly boosted by the 14-point interim agreement between the United States and Iran that was released on Wednesday, extending the ceasefire announced in April by another 60 days to allow the two sides to negotiate a final truce. As per Reuters, the agreement was signed after the US and Iran formally signed a memorandum of understanding on 19 June in Switzerland, with US President Donald Trump threatening to resume attacks and kill Iranian officials if they failed to honour their commitments. The geopolitical backdrop includes the blockage of critical oil shipments through the Strait of Hormuz, a development that has rattled energy markets and raised concerns over supply disruptions. The interim agreement has provided some stability to markets, supporting the recovery in precious metals. Market analysts note that any progress toward a formal agreement may reduce geopolitical uncertainty, while setbacks could revive safe-haven demand for gold.
In the domestic market, gold prices showed mixed performance with 24-carat gold trading at ₹1,51,090 per 10 grams in Mumbai, Kolkata, Hyderabad, and ₹1,53,050 in Chennai, while Delhi saw prices at ₹1,51,240. According to GoodReturns, 22-carat gold decreased by ₹10 to ₹1,38,490 per 10 grams in Mumbai, Kolkata, Bengaluru, Hyderabad, and ₹1,40,290 in Chennai, while Delhi prices stood at ₹1,38,640. Silver futures declined by ₹100 to ₹2,64,900 per kilogram in Delhi, Kolkata, and Mumbai, while Chennai saw prices at ₹2,74,900. In the UAE, local gold rates also moved higher with 24-carat gold increasing by AED1 to AED522.25 per gram and 22-carat gold rising to AED483.50. Latest domestic data shows MCX gold futures for the August contract ended 0.01% higher to ₹1,53,899 per 10 grams, while silver futures for the July contract traded 0.09% up to ₹2,52,046 per kilogram.
The precious metals recovery extends beyond immediate geopolitical developments, with technical analysts providing guidance on future price movements. Jateen Trivedi, VP Research Analyst at LKP Securities, notes that COMEX Gold continues to find support near $4,280, while the immediate resistance zone is placed between $4,350–$4,380. A decisive break on either side of this range could determine the next directional move. The recovery comes as the US Federal Reserve kept interest rates unchanged at 3.5% to 3.75% in Chairman Kevin Warsh's first policy decision, with Warsh defending the changes by saying the Fed should focus on facts rather than signalling its future policy path. This technical outlook suggests that as long as negotiations between the US and Iran remain on track and do not break down, the outlook for bullion remains constructive, with gold continuing to find support as investors await final confirmation of the deal.
