Gold and silver prices experienced a notable rally on Wednesday, driven by the indefinite extension of the US-Iran ceasefire, which alleviated geopolitical tensions and concerns over inflation. Spot gold increased by 1.1% to $4,762.22 per ounce, while US gold futures for June delivery rose 1.3% to $4,781. Spot silver prices surged 2.2% to $78.38 per ounce. This surge followed US President Donald Trump's announcement of the ceasefire extension, which significantly reduced near-term geopolitical risks and led to a decline in crude oil prices and a weaker US dollar, both of which support precious metal prices. In the domestic market, the Multi Commodity Exchange (MCX) reflected these trends, with gold prices rising by ₹1,900 to ₹1,53,571 per 10 grams and silver climbing ₹5,801 to ₹2,50,502 per kilogram.

Despite the synchronized rally, analysts highlight a diverging outlook for gold and silver. Gold is seen as a stable safe-haven asset, while silver's appeal lies in its industrial applications, particularly in sectors like solar energy and electronics. Market analysts suggest that silver may outperform gold in the medium term, especially if geopolitical conditions remain stable. The current gold-to-silver ratio, around 60:1, suggests potential for silver gains. Some analysts predict that MCX silver prices could reach ₹2.75 lakh per kilogram if trade flows normalize, while others expect gold prices to rise to ₹1,70,000 per 10 grams in the coming months, indicating a broadly positive outlook for both metals.