Precious metals experienced a downward trend in Friday’s morning session, with gold and silver shedding up to 1 percent on domestic exchanges as easing geopolitical friction cooled safe-haven demand. On the Multi Commodity Exchange (MCX), June gold futures slid to an intraday low of Rs 1,56,316 per 10 grams, marking a decline of nearly 0.38 percent from its previous close. Concurrently, July silver futures witnessed a sharper contraction, tumbling by 0.75 percent to hit a session low of Rs 2,67,500 per kilogram.
This domestic retreat directly contrasts with the international markets, where COMEX gold and silver managed mild gains, trading near $4,540 and $76 per ounce, respectively. Market analysts attribute the shifting sentiment to significant diplomatic developments between Washington and Tehran. Emerging reports indicate that US and Iranian negotiators have hammered out a tentative agreement to extend their current ceasefire by an additional 60 days. The proposed deal also includes plans to revive formal discussions regarding Iran’s nuclear program and ensure unrestricted commercial shipping through the critical Strait of Hormuz.
While US Vice President JD Vance confirmed the tentative understanding, he noted that final approval from President Donald Trump remains pending. This potential diplomatic breakthrough follows a period of heightened military escalation, which previously saw targeted US airstrikes in southern Iran and subsequent Iranian retaliation.
According to financial experts, the prospect of an extended ceasefire has effectively alleviated immediate market anxieties regarding global inflation and prolonged high interest rates. As geopolitical risk premiums dissipate, investor appetite has visibly shifted away from traditional defensive assets. Analysts project that both gold and silver will continue to face volatile, cautious trading in the near term, with future price velocity heavily dependent on the official ratification of the ceasefire.
