In a twist that caught many off guard, gold and silver prices exploded higher on MCX Wednesday, shrugging off President Trump’s announcement of a temporary Iran ceasefire. Investors flocked to these safe havens, pushing gold’s June 5 futures up 3,688 rupees or 2.7% to a peak of ₹1,54,934 per 10 grams.
Silver stole the show, surging over 6% to ₹2,46,376 per kg on the May 5 contract. At around noon, gold held gains at 2.8% or ₹4,211 higher to ₹1,54,471, and silver advanced 6.19% or ₹14,330 to ₹2,45,678 per kg.
Market experts point to persistent safe-haven buying as the primary driver, amplified by dip-buying that underscored underlying strength. This resilience highlights how geopolitical jitters can override even positive headlines like ceasefires.
The rupee firmed up 40 paise versus the dollar to 92.61 from 93, bolstering sentiment. RBI’s unchanged repo rate of 5.25% avoided any shocks, steadying bonds and loans.
Crude oil tumbled dramatically: Brent shed $17.39 (16%) to $91.88/bbl, WTI lost $21.90 (20%) to $91.05. Stock markets cheered, with Sensex and Nifty popping 4% on the policy continuity and truce news.
Trump’s Truth Social update on troop withdrawals represents a U-turn from fiery statements hours earlier, fostering a risk-on environment. Yet, precious metals’ rally suggests caution lingers, positioning them as key portfolio protectors in volatile times.
