Gold and Silver Prices Surge Amid US-Iran Ceasefire Extension
Gold vs Silver: Which precious metal can outperform amid uncertainty over US-Iran war?
Mint
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Gold and silver prices increased significantly following the indefinite extension of the US-Iran ceasefire, which alleviated geopolitical tensions. Spot gold rose 1.1% to $4,762.22 per ounce, while silver surged 2.2% to $78.38 per ounce. Analysts suggest silver may outperform gold in the medium term due to its industrial demand.
- 01Gold prices rose 1.1% to $4,762.22 per ounce, while silver surged 2.2% to $78.38 per ounce.
- 02The US-Iran ceasefire extension has eased geopolitical tensions, reducing inflation concerns.
- 03Analysts predict silver may outperform gold in the next 6–12 months due to strong industrial demand.
- 04The gold-to-silver ratio remains elevated, indicating potential for silver gains.
- 05MCX silver prices could reach ₹2.75 lakh per kilogram if trade flows normalize.
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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.
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The easing of geopolitical tensions may lead to increased demand for silver in industrial sectors, potentially benefiting local economies reliant on these markets.
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