Mumbai: Gold and silver prices on Wednesday traded sharply higher due to safe-haven demand, even after a two-week ceasefire plan was announced by US President Donald Trump.
On the Multi Commodity Exchange (MCX), gold futures (June 5) jumped as much as Rs 3,688 or 2.45 per cent to an intraday high of Rs 1,53,977 as of 10:52 AM.
The yellow metal was trading at Rs 1,53,920, up Rs 3,631 or 2.42 per cent. It touched an intraday low of Rs 1,53,301, a gain of 2 per cent from the previous close.
On the other hand, silver futures (May 5) climbed nearly 6 per cent or Rs 13,422 to hit an intraday high of Rs 2,44,770.
At the last count, the white metal was trading at Rs 2,44,297, up Rs 12,949 or 5.6 per cent. It recorded a low of Rs 2,40,601, up 4 per cent from the previous close.
Analysts said the surge in precious metals was supported by safe-haven demand, adding that buying interest at lower levels indicates strengthening momentum.
In the currency market, the Indian rupee strengthened by 40 paise to 92.61 against the dollar, compared to its previous close of 93.
Meanwhile, the Reserve Bank of India kept the repo rate unchanged at 5.25 per cent.
Oil prices also traded sharply lower, falling up to 20 per cent. Brent crude futures declined nearly 16 per cent or $17.39 to an intraday low of $91.88, while US WTI crude plunged nearly 20 per cent or $21.90 to $91.05.
Equity benchmarks Sensex and Nifty also traded higher, jumping nearly 4 per cent after the RBI kept the repo rate unchanged and the ceasefire announcement.
This sentiment among traders and investors across markets follows US President Donald Trump’s announcement of a temporary ceasefire with Iran, easing geopolitical tensions.
Trump confirmed the decision in a post on his social media platform, Truth Social, stating that he had instructed US forces to stand down, just hours after issuing strong warnings that included references to the “death of a civilisation.”
(IANS)
