Indian Gold and Silver Prices Rise on US‑Iran Negotiation Hopes

Gold and silver futures on India's Multi Commodity Exchange (MCX) climbed in late May as investors reacted to signs of progress in United States‑Iran negotiations and a softer US dollar. On May 25, MCX gold June futures rose about 0.3% to Rs 1,59,135 per 10 g, while silver July futures gained nearly 2% to around Rs 2,77,000 per kg. The rally was supported by safe‑haven demand amid uncertainty over the Strait of Hormuz and expectations that a deal could ease regional tensions, reopen the strait, and unlock frozen Iranian assets.

Commodity analysts noted that the upward bias also reflected lower crude oil prices and a modest rupee strength, which limited further gold upside despite international COMEX gold hovering near $4,500‑$4,600 per ounce. Domestic factors included a sharp increase in India's gold import duty from 6% to 15%, the largest hike on record, which is expected to curb demand by 10% year‑on‑year. Nonetheless, bullion prices remained above the Rs 1.5 lakh per 10 g psychological barrier, with major jewellery retailers such as Tanishq, Malabar Gold & Diamonds and Kalyan Jewellers keeping rates relatively stable.

Analysts forecast a range‑bound outlook for the coming week, pending further clarity on the US‑Iran talks and upcoming US economic data. Silver is expected to retain a modest positive bias, while gold may trade sideways unless new developments shift market sentiment.