COMEX gold was trading at $4,563 per ounce, up $39.80 or 0.88%, after touching an intraday high of $4,582.60 an ounce. COMEX silver climbed 2.89% to $78.40 per ounce.
The dollar weakened on Monday (May 25), making dollar-denominated bullion cheaper for holders of other currencies and supporting demand for precious metals.
Investor sentiment remained focused on geopolitical developments after US President Donald Trump said Washington and Tehran had “largely negotiated” a memorandum of understanding aimed at easing tensions and reopening the Strait of Hormuz. However, Trump later said he had instructed US representatives not to rush into any agreement with Iran, tempering expectations of an immediate breakthrough.
Oil prices fell to two-week lows amid optimism over potential progress in US-Iran talks, easing some inflation concerns globally. Analysts said lower oil prices and continued geopolitical uncertainty supported safe-haven demand for gold and silver.
Market participants are also monitoring the US Federal Reserve after Kevin Warsh took charge as Fed chair on Friday, at a time when rising energy costs linked to the Iran conflict are contributing to inflation pressures.
Analysts expect bullion prices to remain sensitive to headlines around the US-Iran negotiations and upcoming US economic data, including GDP, housing numbers, consumer confidence and Personal Consumption Expenditure inflation readings, which could provide further direction on the Federal Reserve’s policy path.
Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial, said gold prices may remain range-bound in the near term, while silver could continue to outperform amid ongoing geopolitical uncertainty.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said the recent correction in crude oil prices has eased some inflation worries, while the recovery in the rupee limited gains in domestic gold prices last week.
On the domestic front, MCX gold futures had settled near ₹1.58 lakh per 10 grams last week, while silver futures ended around ₹2.71 lakh per kilogram.
–With agencies inputs
