Gold futures surged $154 to $4,267 per ounce on June 12 amid growing optimism over a potential peace agreement between the US and Iran, according to livemint.com. Silver prices also gained $4, reflecting increased investor confidence as hopes for stability in West Asia improved. The near-month gold futures contract on MCX rose by ₹2,121 per 10 grams to reach ₹1,51,053.
The rally in precious metals followed reports of advancing diplomatic talks aimed at ending the three-month-long conflict in West Asia and reopening the strategically important Strait of Hormuz. The market reacted positively to the possibility of reduced geopolitical tensions, which typically support safe-haven assets like gold and silver. The gains came despite gold facing a second consecutive weekly loss, highlighting the volatility driven by evolving geopolitical developments, livemint.com reported.
This price movement underscores the sensitivity of precious metals markets to geopolitical events, especially those involving key oil transit routes like the Strait of Hormuz. The US-Iran conflict has weighed heavily on commodity prices since its onset, with gold often serving as a hedge against uncertainty. The recent uptick contrasts with the broader trend of gold's weekly decline, indicating that peace prospects can swiftly influence investor sentiment and commodity valuations.
On the MCX, gold futures hit a daily high of ₹1,51,053 per 10 grams, marking a significant intraday gain. Silver's $4 increase also reflects broader market optimism. These price levels will be closely watched by traders and investors as diplomatic developments continue to unfold.