Summary of this article
Silver rises Rs 1,700 on firm global demand cues
Gold slips Rs 200 amid strong dollar, yields
Geopolitical tensions, currency moves shape bullion market trends
Silver price climbed Rs 1,700 to Rs 2.58 lakh per kilogram in the national capital on Thursday due to steady demand and firm global trends, even as investors tracked geopolitical developments and currency movements.
According to the All India Sarafa Association, the white metal jumped Rs 1,700, or nearly 1 per cent, to Rs 2,58,700 per kg (inclusive of all taxes) against the previous close of Rs 2,57,000 per kg.
However, gold of 99.9 per cent slipped Rs 200 to Rs 1,57,800 per 10 grams (inclusive of all taxes). On Wednesday, the yellow metal had finished at Rs 1,58,000 per 10 grams.
"Gold traded within a narrow range on Thursday, reflecting mixed market cues. Ongoing instability around the Strait of Hormuz supported safe-haven demand for the US dollar, which acted as a key headwind for the precious metal," Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, said.
A recovery in the dollar and US Treasury bond yields further limited gains in the precious metals, though expectations of renewed diplomatic engagement between Washington and Tehran improved overall risk sentiment, he added.
Analysts also pointed to reports that both sides may extend the ceasefire by an additional two weeks to allow more time for negotiations. The development kept crude oil prices near recent lows, easing immediate inflation concerns and preventing sharper losses in bullion.
In the international markets, spot silver rose nearly 1 per cent to USD 79.61 per ounce, and gold advanced by USD 18.36, or 0.38 per cent, to USD 4,809.16 per ounce.
Spot gold hovered around USD 4,811 per ounce amid expectations that Israel and Lebanon could also agree to a ceasefire, Praveen Singh, Head of Commodities, Mirae Asset ShareKhan, said.
Meanwhile, Iran's indication that it may allow safe passage to ships on Oman's side of the Strait of Hormuz, along with improving holdings in gold ETFs, also lent support to bullion sentiment, he added.
Gandhi further stated that gold is expected to remain range-bound as markets await clearer direction on US-Iran negotiations. Any progress toward a lasting agreement could further ease oil prices and inflation concerns, potentially lifting up gold.
"However, renewed tensions or disruption in the Strait of Hormuz may lift oil prices, which could weigh down on gold prices due to the inverse relationship between gold and oil prices in times of geopolitical uncertainty," he added.
