Spot gold prices rallied 1.4% to $4,570.88 per ounce, while US gold futures for June delivery gained 1.1% to $4,572.90, according to reports from Livemint. Spot silver price jumped 3.9% to $78.42 per ounce, demonstrating strong momentum across precious metals. In other commodities, platinum prices rose 1.9% to $1,959.85, and palladium price was up 1.9% at $1,373.25. The rally was supported by a weaker dollar and lower oil prices, as prospects of a breakthrough in the US-Iran peace talks eased inflation concerns.
Crude oil prices hit two-week lows on optimism over the prospects of a US-Iran peace deal, as reported by Livemint. Brent crude prices plunged 5.08% to $98.28 a barrel, while US West Texas Intermediate declined 5.29% to $91.49 a barrel. The decline was driven by hopes of reopening of the crucial Strait of Hormuz, which has been a key concern for global oil markets. The dollar weakened, making greenback-priced bullion more affordable for holders of other currencies.
US President Donald Trump earlier said Washington and Iran had "largely negotiated" a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz, according to Livemint. However, on Sunday Trump told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough in the three-month-old war that had been raised a day earlier. The mixed signals from the Trump administration have created uncertainty in commodity markets, with Trump recently posting on Truth Social that "The final decision regarding the deal with Iran depends entirely on me."
Market volatility has been intense as Trump's mixed messages continue to create uncertainty, with recent reports suggesting "buy the rumor" for 6 weeks+ as investors await clarity on the deal's final terms. Equity markets have seen 1.5% up moves followed by 0.5% pullbacks, with the "hope" of a deal" being the best thing to happen to equity markets. Crude oil saw similar volatility, declining as much as 7.5% before clawing back some gains. The US economy has shown remarkable resilience, bouncing back from near stagnation in Q4 2025 (0.5% annualized pace) to 2% in Q1 2026, though concerns remain about potential inflation pressures from energy costs.
