Gold prices jumped by ₹3,224 to ₹1,50,860 per 10 g against ₹147,636 on Tuesday on hopes of an early end to the ongoing West Asia war.
Silver prices jumped ₹8,602 to ₹2,49,067 a kg from the previous close of ₹2,40,465 on expectation of higher demand.
The sharp recovery in bullion prices followed prospects of a US-Iran peace agreement leading to softer dollar and oil prices. This, in turn, will remove the two key headwinds that have weighed on bullion since the war began.
Brent crude tumbled 7 per cent to about $102 a barrel and WTI plunged 8 per cent to below $94, extending a sharp two-day sell-off as a breakthrough in US-Iran negotiations appeared closer than at any point since the war began.
Easing geopolitical tensions
The yellow metal opened on a firm note at ₹1,50,636 per 10 gram and gained further on easing geopolitical tension and softer crude oil prices.
On MCX, gold for June delivery was up 2 per cent at ₹1,52,601, while the August and October contracts were up 2 per cent each at ₹1,56,052 and ₹159,175 per 10 grams.
Similarly, silver for July and September delivery on MCX jumped 4 per cent each to ₹2,54,152 and ₹2,59,447 a kg, respectively.
Comex gold surged over 3 per cent to a one-week high of $4,720 an ounce, while silver jumped nearly 6 per cent to $77.87 an ounce, its highest level in two weeks.
Inflation risks ease
Ajay Kumar, Director, Kedia Commodities said the US is close to a preliminary agreement with Iran, including conditions such as a 12 to 15 year halt in nuclear enrichment, enhanced UN inspections, and gradual sanctions relief with asset unfreezing.
“The decline in oil prices helped ease inflation concerns, reducing expectations of aggressive monetary tightening. Earlier, gold faced strong selling pressure as elevated energy costs fuelled inflation fears and supported higher interest rate expectations,” he added.
Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said with oil-linked inflation risks easing, the macro environment tilts modestly bullish for precious metals.
With geopolitical developments continuing to dominate price action, the impact of any negative US data may prove secondary to any further headlines out of Washington or Tehran, she said.
The accelerated decline reflects a rapid unwinding of the geopolitical risk premium that had driven both Brent and WTI benchmarks to multi-year highs last week, she added.
Published on May 6, 2026
