Gold and silver prices rose on Thursday, continuing the recovery seen on Wednesday, as optimism surrounding a potential US-Iran peace agreement and a decline in the US dollar increased demand for precious metals. Spot gold traded at approximately $4,540 per ounce, while silver remained above $75.90, building on gains exceeding 3 percent from the previous day. On the Multi Commodity Exchange (MCX), gold futures approached ₹1,60,006 per 10 grams and silver reached ₹2,74,265 per kilogram.
The primary driver of this market sentiment was a statement from US President Donald Trump that negotiations with Iran were nearing their “final stages.” This announcement heightened expectations of a deal that could mitigate supply disruptions in the Strait of Hormuz, a crucial global shipping route. However, Iran cautioned that any renewed military aggression could lead to a broader regional conflict, leaving uncertainty in place. The Dollar Index decreased to 99.1, down by 0.24 percent, making dollar-denominated metals more appealing to international buyers.
The outlook for the Federal Reserve added complexity to the precious metals market. Minutes from the Federal Reserve’s recent meeting indicated that most policymakers believed further interest rate increases would likely be necessary if inflation persisted above the 2 percent target. While markets currently anticipate that the Fed will maintain steady rates until the end of 2026, expectations for rate hikes in the latter part of the year have grown. Elevated rates generally pressure gold prices by raising the opportunity cost of holding the non-yielding asset.
Gold initially surged past $4,570 on Thursday morning due to optimism surrounding the Iran negotiations but later fell back below $4,550 as expectations of hawkish moves from the Fed took hold. Traders are closely monitoring upcoming US jobless claims, housing data, and flash Purchasing Managers’ Index (PMI) readings for guidance on the future interest rate trajectory. Recent Consumer Price Index (CPI) and Producer Price Index (PPI) data have highlighted the inflationary effects of high oil prices, reinforcing calls for monetary caution.
On the MCX, technical analysts at Kotak Neo identified a sideways trading range for gold between ₹1,57,565 and ₹1,61,060, with silver fluctuating between ₹2,65,410 and ₹2,80,440. Immediate resistance for MCX gold is noted at ₹1,60,000 to ₹1,60,400, with support found at ₹1,59,000 to ₹1,58,500. For silver, resistance is positioned at ₹2,75,000 to ₹2,76,000, while a break below ₹2,71,000 could see prices decline toward ₹2,67,000 to ₹2,68,000.
Published on May 21, 2026.
