Gold prices surged by ₹3,224 to reach ₹1,50,860 per 10 grams, compared to ₹1,47,636 on Tuesday, amid increasing optimism for an early resolution to the ongoing conflict in West Asia. Silver also saw a significant rise, climbing ₹8,602 to ₹2,49,067 per kilogram from the previous close of ₹2,40,465, driven by expectations of heightened demand.
The sharp rise in precious metal prices can be attributed to prospects of a US-Iran peace agreement, which is expected to lead to a depreciation of the dollar and a decrease in oil prices. These developments could alleviate the key pressures that have impacted bullion prices since the conflict’s commencement.
Brent crude oil prices fell by 7 percent to approximately $102 per barrel, while West Texas Intermediate (WTI) dropped 8 percent to below $94, continuing a notable two-day decline as negotiations between the US and Iran appear to be making progress.
Easing Geopolitical Tensions
The yellow metal commenced trading robustly at ₹1,50,636 per 10 grams and gained strength further due to diminishing geopolitical tensions and lower crude oil prices. On the Multi Commodity Exchange (MCX), gold for June delivery increased by 2 percent to ₹1,52,601, with August and October contracts also rising by 2 percent each to ₹1,56,052 and ₹1,59,175 per 10 grams, respectively. Likewise, silver contracts for July and September delivery on MCX saw a 4 percent increase, reaching ₹2,54,152 and ₹2,59,447 per kilogram, respectively.
Internationally, Comex gold rose over 3 percent to a one-week high of $4,720 per ounce, while silver experienced a nearly 6 percent increase, reaching $77.87 per ounce, its peak in two weeks.
Inflation Risks Ease
Ajay Kumar, Director of Kedia Commodities, indicated that the US is nearing a preliminary agreement with Iran, which may include a 12 to 15-year suspension of nuclear enrichment, enhanced UN inspections, and gradual sanctions relief alongside asset unfreezing. He commented, “The decline in oil prices helped ease inflation concerns, subsequently reducing the expectations for aggressive monetary tightening. Previously, gold faced considerable selling pressure due to elevated energy prices fuelling inflation fears and supporting higher interest rate expectations.”
Kaynat Chainwala, Assistant Vice President of Commodity Research at Kotak Securities, noted that with inflation risks linked to oil subsiding, the overarching macroeconomic environment is beginning to tilt moderately in favor of precious metals. She emphasized that ongoing geopolitical developments will continue to influence market prices, suggesting that any negative economic data from the US may be overshadowed by emerging news from Washington or Tehran.
The swift downturn in oil prices marks a rapid unwinding of the geopolitical risk premium that had propelled both Brent and WTI benchmarks to multi-year highs just a week prior.
Published on May 6, 2026
