Gold and silver prices extended gains on Thursday as hopes of a US-Iran peace agreement and a weaker US dollar boosted investor demand for precious metals | Photo Credit: Inok

Gold and silver prices rose on Thursday, extending Wednesday’s recovery, as optimism around a potential US-Iran peace agreement and a retreat in the US dollar lifted demand for precious metals. Spot gold traded near $4,540 per ounce, while silver held above $75.90, building on gains of over 3 per cent from the previous session. On the MCX, gold futures were near ₹1,60,006 per 10 grams and silver near ₹2,74,265 per kilogram.

Trump’s Iran remarks boost market sentiment

The primary catalyst was a statement by US President Donald Trump that negotiations with Iran were in their “final stages.” The remarks boosted expectations of a deal that could ease supply disruptions in the Strait of Hormuz, a key global shipping corridor. However, Iran warned that any renewed military aggression would risk a wider regional conflict, keeping uncertainty elevated. The Dollar Index slipped to 99.1, down 0.24 per cent, making dollar-denominated metals more attractive to international buyers.

Fed outlook keeps pressure on bullion markets

Federal Reserve meeting minutes released Wednesday added complexity to the outlook. Most policymakers indicated that further interest rate increases would “likely become appropriate” if inflation remained persistently above the 2 per cent target. Markets currently expect the Fed to hold rates steady through the remainder of 2026, though rate hike bets for the second half of the year have increased. Higher rates typically weigh on gold by raising the opportunity cost of holding the non-yielding metal.

Gold initially surged above $4,570 on Thursday morning on the Iran peace optimism but pulled back below $4,550 as hawkish Fed expectations reasserted pressure. Traders are now watching US jobless claims, housing data, and flash PMI readings due later in the day for further direction on the interest rate path. Recent CPI and PPI data have already reflected the inflationary impact of elevated oil prices, reinforcing the case for monetary caution.

MCX gold faces resistance near ₹1.60 lakh

On the MCX, technical analysts at Kotak Neo placed gold in a sideways range of ₹1,57,565 to ₹1,61,060, and silver between ₹2,65,410 and ₹2,80,440. Immediate resistance for MCX gold is at ₹1,60,000–₹1,60,400, with support at ₹1,59,000–₹1,58,500. For silver, resistance sits at ₹2,75,000–₹2,76,000, while a break below ₹2,71,000 could drag prices toward ₹2,67,000–₹2,68,000.

Published on May 21, 2026