Mumbai: Gold and silver prices traded higher on Monday, with precious metals gaining up to 3 per cent as a weaker US dollar and expectations around future US Federal Reserve policy decisions supported investor sentiment.
The gains came even as geopolitical tensions eased after US President Donald Trump announced that Washington and Tehran had reached a peace agreement and that the deal is expected to be formally signed on June 19.
On the Multi Commodity Exchange (MCX), gold futures (August) surged as much as 2.19 per cent or Rs 3,301 to touch an intraday high of Rs 1,53,829 per 10 grams around 11:45 am.
The yellow metal was later trading at Rs 1,52,774, up Rs 2,246 or 1.49 per cent from the previous close. It touched an intraday low of Rs 1,52,632 during the session.
On the other hand, silver futures (July) delivery witnessed strong buying interest, trading at Rs 2,53,345 per kg, up Rs 7,159 or nearly 3 per cent.
The white metal was last seen at Rs 2,51,692, higher by Rs 5,500 or 2.24 per cent from the previous close. It touched an intraday low of Rs 2,51,425 during the day.
Earlier in the session, gold and silver opened at Rs 1,53,829 per 10 grams and Rs 2,51,563 per kg, respectively, on the commodity exchange.
According to commodity market experts, the gap-up opening in MCX Gold was aided by weakness in the US dollar, with the dollar index hovering near 99.5 after slipping to a one-week low following the announcement of the US-Iran peace deal.
Analysts said gold continues to maintain a moderately bullish bias, with investor focus shifting from geopolitical developments to monetary policy signals from the US Federal Reserve.
Experts further noted that silver extended its recovery from recent lows and continues to draw support from gold’s strength, while its medium-term outlook remains constructive.
In international markets, COMEX gold and silver also traded higher, reflecting continued investor interest in precious metals.
Meanwhile, crude oil prices declined sharply after the peace deal announcement eased concerns over disruptions to global energy supplies. US West Texas Intermediate (WTI) crude fell more than 5 per cent to around $80 per barrel, while international benchmark Brent crude declined about 4 per cent to nearly $83 per barrel.
Trump announced on Truth Social that the United States and Iran had finalised a peace agreement aimed at ending the conflict and reopening the Strait of Hormuz, a key shipping route that handles nearly one-fifth of global oil supplies.
(IANS)
