Precious metal prices showed strong gains in latest trading amid escalating tensions in Iran and following RBI clarification on gold reserves. International spot gold rose 0.6% to $4,460.20 per ounce as of 11:45 a.m. in Singapore, while silver climbed 0.8% to $73.34 per ounce, according to Bloomberg reports. Gold futures on MCX climbed ₹926 to ₹1,59,445 per 10 grams, representing a 0.58% gain for August delivery contracts. The domestic MCX spot price closed Wednesday's session at ₹1,54,529 per 10 grams, showing resilience despite global market uncertainties. Gold rates in India reached ₹1,59,040 per 10 grams on Friday, while silver rates stood at ₹2,63,910 per kilogram, as per Bullions website data.
Gold and silver rates across major Indian cities showed significant regional variations on Thursday. In Mumbai, 24-carat gold is retailing at approximately ₹1,58,900 per 10 grams, while Kolkata follows with rates at ₹1,58,690 per 10 grams. Delhi trails behind at ₹1,58,630 per 10 grams, according to Bullions website data. The southern markets continue to record the highest figures, with Chennai leading at ₹1,59,360 per 10 grams, followed by Hyderabad at ₹1,59,150 per 10 grams and Bengaluru at ₹1,59,030 per 10 grams. Silver rates in Mumbai are currently ₹2,64,020 per kg, with Delhi at ₹2,63,560 per kg and Chennai at ₹2,64,780 per kg. Silver rates in Kolkata are currently trading at roughly ₹2,63,670 per kg, while Bengaluru follows closely with rates hovering around ₹2,64,220 per kg.
International precious metals markets showed strong performance driven by geopolitical developments. Comex gold futures for August delivery gained $32.55, or nearly 1%, to $4,499.45 per ounce in New York trading. Gold rebounded above $4,470 per ounce globally, gaining nearly 1% on Thursday after Israel and Lebanon agreed to a conditional ceasefire, improving risk sentiment, according to Kotak Neo brokerage firm. However, reports of Israeli strikes in southern Lebanon on Thursday, hours after the ceasefire announcement, limited the upside in bullion prices. Market participants are now awaiting comments from Federal Reserve Governor Michelle Bowman and US unemployment claims data for fresh cues on the future interest-rate trajectory and near-term direction of bullion prices.
The Reserve Bank of India's clarification on Thursday debunked reports of potential gold sales, stating there is no change in the physical stock of gold, which remains unchanged at 880.52 tonnes. According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold has remained trapped in a broad range due to ongoing uncertainty surrounding the US-Iran situation. Elevated oil prices continue to fuel inflation concerns, limiting gold's safe-haven appeal as traders increasingly price in the possibility of tighter monetary policy, analysts told PTI. Brent crude holding near $98 has increased inflation concerns, strengthening expectations that central banks may keep interest rates higher for longer, which remains a negative factor for gold. The clarification from RBI comes following reports that the RBI may have sold gold amounting to approximately USD 12 billion to shield its foreign-currency reserves from the impact of the ongoing conflict in the Middle East.
The Augmont Bullion report (June 3) provided technical analysis showing gold and silver trading within defined ranges. According to the report, gold stays range-bound between $4,450 and $4,600, with prices having rebounded from the lower edge and expected to advance toward the upper edge. Silver remains range-bound between $72 and $78.50, also recovering from the lower boundary and expected to climb toward the upper boundary. This technical analysis suggests potential for upward movement within established trading ranges, supported by the latest RBI clarification on gold reserves and improved geopolitical sentiment following the Israel-Lebanon ceasefire agreement.
