COMEX gold rose 0.41% to $4,869.90 per ounce. Silver outperformed, gaining 1.22% to $80.50 per ounce, with prices nearing session highs.
The uptick in precious metals came as global markets stabilised. Asian equities opened higher, tracking strong overnight gains on Wall Street, where the S&P 500 climbed 1.2% and the Nasdaq 100 extended its rally with a 1.8% rise. The improved sentiment followed optimism that diplomatic engagement between the US and Iran could ease prolonged geopolitical tensions.
Oil prices declined in response to these developments, with Brent crude slipping, reflecting expectations that supply disruptions may be less severe than feared. Lower oil prices tend to ease inflation concerns, which in turn influences investor positioning in safe-haven assets like gold and silver.
Market participants appear to be recalibrating risk after weeks of volatility driven by conflict in the West Asia. While earlier escalation had pushed investors toward bullion, the prospect of talks has moderated extreme safe-haven demand, leading to more measured gains rather than sharp spikes.
At the same time, macroeconomic signals continue to provide support. US wholesale inflation data came in softer than expected, with the producer price index rising less than forecasts. This has reinforced expectations that central banks may avoid aggressive tightening, a factor that typically underpins non-yielding assets such as gold.
The dollar also remained under pressure, extending its recent losing streak. A weaker greenback makes dollar-denominated commodities more attractive to global investors, lending further support to gold and silver prices.
Despite the easing in immediate geopolitical risks, analysts note that underlying uncertainty remains elevated. Ongoing tensions in the Strait of Hormuz and the broader West Asia continue to pose risks to energy markets and global growth, even as diplomatic channels reopen.
The International Monetary Fund has already flagged potential downside risks to global growth if the conflict persists, while the International Energy Agency has warned of a hit to oil demand growth.
In this backdrop, bullion continues to draw interest as a hedge against uncertainty, though gains are increasingly influenced by cross-asset movements — particularly equities, currencies, and crude oil.
–With agencies inputs
