COMEX gold was trading at $4,561.90 per ounce in the Asian session, up 0.09%, after touching an intraday high of $4,593 an ounce. COMEX silver rose 0.30% to $77.680 per ounce.
The dollar weakened against major currencies, making bullion cheaper for holders of other currencies and supporting demand for gold and silver. At the same time, crude oil prices fell more than 2% after US President Donald Trump said he had paused a planned attack on Iran to allow negotiations aimed at ending the ongoing US-Israeli conflict.
Lower oil prices eased concerns over a fresh spike in inflation. Higher energy prices typically fuel inflationary pressures and can keep interest rates elevated for longer, which tends to weigh on non-yielding assets such as gold and silver.
Investors are also tracking leadership changes at the US Federal Reserve after Kevin Warsh was confirmed as the new Fed Chair. Markets have significantly reduced expectations of interest rate cuts in 2026 amid persistent inflation concerns in the US economy.
According to Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and President of India Bullion and Jewellers Association, precious metals witnessed sharp losses in the previous week following stronger-than-expected US inflation data and geopolitical tensions in the West Asia.
“Markets have largely priced out Fed rate cuts for 2026, while a stronger dollar has acted as a key headwind for precious metals,” Kothari said in a market outlook note.
Silver prices, meanwhile, remain sensitive to recent changes in India’s bullion import policy. The government has imposed a 15% import duty on silver, revised import classifications and updated MCX Good Delivery rules for domestic refiners.
Industry participants expect the measures to tighten domestic silver supplies and increase premiums in the near term, especially for jewellery and silverware manufacturers.
–With Reuters inputs
