Gold and Silver Prices Rebound Amid Geopolitical Tensions and Easing Inflation Concerns

Global bullion markets saw a strong recovery on Tuesday, with gold and silver prices rising by up to 2%, following a brief two-day decline. The rebound comes amid a mix of easing inflation worries and ongoing geopolitical developments, particularly involving the US and Iran.

In international trading, COMEX gold climbed nearly 0.74%, gaining $35.4 to touch an intra-day high of $4,802.80. Silver prices performed even stronger, with COMEX silver surging around 2% to reach $77.16 per ounce during the session.

The uptick in precious metals was supported by signs of a possible diplomatic breakthrough in the US-Iran situation. While tensions remain elevated—especially after the US imposed a naval blockade on the Strait of Hormuz—statements from both sides hint at a willingness to negotiate. Donald Trump noted that Iranian officials had initiated contact, while Masoud Pezeshkian signalled openness to continued dialogue under international frameworks.

Meanwhile, oil prices moved in the opposite direction. Brent crude slipped below $100 per barrel, trading at $96.6 (down 2.77%), while US WTI crude fell over 3% to $95.69. Lower crude prices, along with easing inflation expectations, added support to bullion demand.

Equity markets also reacted positively. Major US indices, including the S&P 500 and Nasdaq, ended more than 1% higher. Asian markets followed suit, with gains seen across Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI.

Despite the positive momentum, analysts remain cautious. The continued blockade of the Strait of Hormuz raises concerns about potential supply disruptions and broader economic implications, which could keep market volatility elevated.

Back home, trading activity remained muted during the day. The Multi Commodity Exchange of India (MCX) stayed closed in the morning session and is scheduled to reopen in the evening. Domestic stock exchanges, including the Bombay Stock Exchange and the National Stock Exchange of India, remained shut in observance of Dr. B. R. Ambedkar Jayanti.

With inputs from IANS