In the domestic futures market, MCX silver contracts for July 2026 delivery climbed Rs 5,042, or 1.8%, to Rs 2,76,888 per kilogram. Gold futures for June 2026 delivery also moved higher by Rs 821 to Rs 1,59,500 per 10 grams. During the previous session, both precious metals had ended marginally lower.
On Saturday, US President Donald Trump said that Washington and Tehran had “largely negotiated” a memorandum of understanding related to a peace agreement that could lead to the reopening of the Strait of Hormuz. Before the conflict escalated, the route handled nearly one-fifth of global oil and liquefied natural gas shipments.
The decline in crude oil prices to a two-week low also supported buying sentiment in precious metals. Oil prices play a key role in shaping inflation expectations, as elevated crude rates can push inflation higher and keep interest rates elevated for a longer period. While gold is generally viewed as a hedge against inflation, higher interest rates often reduce the appeal of non-yielding assets like bullion.
In the international market, spot gold rose 1.1% to USD 4,560.09 per ounce, while US gold futures for June delivery gained 0.9% to USD 4,562.10 per ounce. Among other precious metals, spot silver jumped 3.1% to USD 77.81 per ounce. Platinum advanced 2.1% to USD 1,963.30, while palladium climbed 2.4% to USD 1,381.82 per ounce.
