Gold prices held steady on Tuesday, while silver witnessed a decline on the Multi Commodity Exchange (MCX) as market participants remained cautious ahead of the anticipated details of a peace deal between the United States and Iran. The precious metals market is closely monitoring geopolitical developments, which could influence safe-haven demand.
Gold and Silver Performance
On MCX, gold futures for August delivery were trading flat at Rs 48,500 per 10 grams, while silver contracts for July delivery edged lower by 0.3% to Rs 62,200 per kilogram. The slight dip in silver prices reflects profit-booking after recent gains, as investors await clarity on the US-Iran negotiations.
Global Cues and Market Sentiment
Globally, spot gold remained near $1,850 per ounce, supported by a weaker US dollar and falling bond yields. However, gains were capped as investors turned cautious ahead of the release of the US-Iran peace agreement terms. Analysts believe that a successful deal could reduce geopolitical tensions, thereby diminishing gold's safe-haven appeal.
Silver, often considered a more volatile metal, mirrored gold's trend but faced additional pressure from industrial demand concerns. The metal is used extensively in electronics and solar panels, and any slowdown in global manufacturing could weigh on prices.
City-Wise Gold Rates
Here are the gold rates (per 10 grams, 22-carat) in major Indian cities:
- Delhi: Rs 48,200
- Mumbai: Rs 48,100
- Chennai: Rs 48,350
- Kolkata: Rs 48,150
- Bengaluru: Rs 48,200
- Hyderabad: Rs 48,300
- Ahmedabad: Rs 48,100
- Jaipur: Rs 48,250
Outlook
Market experts suggest that gold prices may remain range-bound in the near term until the US-Iran peace deal details are officially announced. A positive outcome could lead to a short-term correction, while any delays or setbacks might push prices higher. Investors are advised to stay vigilant and consider geopolitical risks before making trading decisions.
Silver is expected to follow gold's trajectory but with higher volatility. Industrial demand recovery and global economic data will be key factors to watch for silver's future direction.
