Mumbai — Gold and silver prices traded higher Friday, with precious metals rising as much as 2 percent amid hopes for a peace deal in the ongoing West Asia conflict.
On the Multi Commodity Exchange, August gold futures rose as much as 1.11 percent, or Rs 1,668, to an intraday high of Rs 1,50,600 around 11:30 a.m.
Gold was later trading at Rs 1,49,916, up 0.66 percent, or Rs 948. It touched an intraday low of Rs 1,49,569, still higher by 0.42 percent, or Rs 637, from the previous close.
July silver futures traded at Rs 2,42,143, up Rs 2,490, or 1 percent.
Silver touched an intraday high of Rs 2,44,817, gaining 2.15 percent during the session. It recorded an intraday low of Rs 2,41,601, up 0.81 percent, or Rs 1,948, from the previous close.
Earlier in the day, gold and silver opened at Rs 1,50,595 and Rs 2,42,776, respectively, on the commodity exchange.
Commodity market experts said bullion remained under pressure overall and was headed for a second straight weekly decline, as persistent inflation concerns and growing expectations of a U.S. Federal Reserve rate hike continued to weigh on sentiment.
Analysts said precious metals rebounded sharply from six-month lows after U.S. President Donald Trump indicated that the United States and Iran could reach a peace agreement as early as this weekend.
However, gains remained limited because of continued uncertainty over the negotiations, with Iranian officials denying that a final agreement had been reached.
Experts said optimism over a potential diplomatic breakthrough eased concerns about global energy supplies, triggering a decline in crude oil prices and improving broader risk appetite in financial markets.
Market participants will now track developments in U.S.-Iran negotiations and upcoming commentary from the Federal Reserve for further direction in precious metal prices.
In international markets, COMEX silver traded at $66.94, up more than 4 percent, while COMEX gold rose more than 2 percent to $4,203.70 per ounce.
Crude oil prices declined sharply, with U.S. West Texas Intermediate crude falling roughly 3 percent to $85 per barrel. International benchmark Brent crude fell 1.59 percent to $88.94 per barrel. (Source: IANS)
