Global gold and silver prices rebounded sharply on Tuesday, climbing up to 2 per cent. This major surge followed a two-day decline, fueled by signs of a potential diplomatic resolution regarding the ongoing US-Iran conflict.
In the international market, COMEX gold saw significant gains, rising as much as 0.74 per cent, or $35.4. It hit an intra-day high of $4,802.80 at 9:30 am (local time), recovering most of the losses recorded in the previous two sessions.
Similarly, COMEX silver experienced a strong rally, gaining 2 per cent to trade at $77.16 per ounce, marking an intra-day high. The recovery in bullion prices provided a boost even as elevated geopolitical tensions persist globally.
Geopolitical Thaw Sparks Bullion Rally
The catalyst for the jump in gold and silver is linked to diplomatic developments. Earlier, the US had initiated a naval blockade in the Strait of Hormuz.However, reports surfaced that Iranian officials reached out to the US administration, signaling a willingness to negotiate a deal. According to reports, Iranian President Masoud Pezeshkian confirmed that Tehran remains open to continuing peace talks under the framework of international law.
Global Commodities See Mixed Direction
The broader commodity landscape presented mixed signals. Crude oil prices slipped, dropping below the $100 per barrel mark.Brent crude futures on Tuesday traded at $96.6 per barrel, showing a decline of 2.77 per cent. Meanwhile, US WTI crude fell by more than 3 per cent, settling at $95.69.
Equities Advance Amid Global Market Optimism
Equity markets reacted positively to the easing diplomatic rhetoric. Wall Street indices showed strong performance, with both the major S&P 500 and Nasdaq indices ending more than 1 per cent higher.In Asian markets, positive momentum continued. Japan’s Nikkei, Hong Kong’s Hang Seng, and South Korea’s KOSPI rose notably, recording gains of as much as 2.6 per cent, 1.3 per cent, and 3.5 per cent, respectively.
Analysts Maintain Caution Over Supply Disruptions
Despite the bullish momentum in commodities and equities, analysts urged caution. The persistent US blockade of the Strait of Hormuz continues to raise significant fears regarding potential supply disruptions and broader economic stress.Domestically, the Multi Commodity Exchange (MCX) remained closed in the morning session, resuming trading in the evening between 5 pm and 11:30 pm. Furthermore, domestic stock exchanges, the BSE and the NSE, were closed due to Dr B.R. Ambedkar Jayanti.
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