Gold and silver prices are holding steady after rallying on hopes of a US-Iran peace deal. All eyes are now on the US Federal Reserve's commentary and decision on rates, especially if the bank signals any future rate hikes to counter inflation. The peace deal between the US and Iran is expected to be signed on Friday, which is a positive trigger for gold and silver. Gold and silver have seen a record run over the last few quarters, hitting new lifetime highs earlier this year. However, the US-Iran conflict has erased quite a bit of the gains seen in the yellow metal.
Silver Rate Today: Spot Silver Rises
Spot silver advanced 0.4% to $70.47 per ounce. Platinum climbed 0.9% to $1,819.45, while palladium gained 0.6% to $1,360.32 per ounce.
Gold Rate Today: Gold Round-Up for Tuesday
Gold prices edged lower in the national capital on Tuesday, while silver held steady as buying activity remained muted in the domestic market. Traders said gold of 99.9% purity declined by Rs 200 to Rs 1,59,200 per 10 grams, inclusive of taxes, compared with its previous close of Rs 1,59,400 per 10 grams. Silver prices, meanwhile, were unchanged at Rs 2,60,700 per kilogram.
Market analysts attributed the softness in precious metals to improving risk appetite, as easing geopolitical concerns lifted sentiment in equity markets and strengthened the rupee, encouraging investors to shift funds away from safe-haven assets. At the same time, losses in the domestic market were limited by positive trends overseas. International bullion prices moved higher as worries about energy-led inflation eased, lending support to gold and silver. In global trade, spot gold was quoted at $4,344.36 per ounce, while spot silver traded at $70.43 per ounce, with both metals gaining nearly 1%.
Gold Rate Today: Gold Holdings in Focus
A survey conducted by the World Gold Council found that a record 45% of reserve managers expect to increase their institutions' gold holdings over the next 12 months, according to data released on Tuesday.
Gold Rate Today: What the Market is Focusing On
Additional details emerged regarding the interim agreement between the United States and Iran aimed at ending the conflict in the Middle East. US President Donald Trump said the arrangement would prevent Tehran from obtaining a nuclear weapon, while a US official indicated that the deal would permit Iran to resume oil sales once it is formally signed. The memorandum of understanding reached this week, though not yet publicly released, extends the fragile ceasefire announced in April by another 60 days, providing both sides with additional time to negotiate a permanent settlement.
Market participants are now focused on the Federal Reserve's policy announcement later in the day, which will be the first under Chair Kevin Warsh. Interest rates are widely expected to remain unchanged. Updated projections from the Fed are expected to show that most policymakers favour keeping short-term borrowing costs steady throughout the year. However, a smaller group is likely to signal support for a rate increase to prevent inflationary pressures from becoming entrenched.
Gold Rate Today: Gold Prices Rise
Gold prices moved higher on Wednesday, marking a fifth consecutive session of gains, as easing concerns over further interest-rate increases and growing optimism surrounding the US-Iran peace initiative supported demand for the precious metal. Investors were also closely watching developments related to the agreement and awaiting the outcome of the Federal Reserve's policy meeting. Spot gold rose 0.4% to $4,348.93 per ounce as of 0107 GMT. US gold futures for August delivery gained 0.3% to $4,368.40 per ounce.
Domestically, to discourage purchases of gold and silver, which add pressure on forex, the government has raised the import duties from 6% to 15%. Meanwhile, India's gems and jewellery exports registered a year-on-year decline of 2.49% in May, falling to $2,047.89 million (Rs 19,573.96 crore), as elevated gold prices and supply-related challenges weighed on shipments, according to data released by the Gem and Jewellery Export Promotion Council (GJEPC). GJEPC said the weakness was largely attributable to a steep fall in exports of plain gold jewellery, which declined 14.75% during the month to $758.44 million. The council added that the industry continues to grapple with multiple headwinds, including persistently high gold prices, shortages of gold available for export manufacturing and regulatory issues that have constrained the supply of gold through banking channels.
