Precious metals rally on cooling Middle East tensions

Gold prices advanced toward $4,800 per ounce in electronic trading on Thursday, extending gains from the previous session as easing geopolitical tensions and a weaker U.S. dollar supported precious metals. Optimism surrounding a possible US-Iran agreement helped calm fears of supply disruptions in the Middle East, triggering a sharp pullback in crude oil prices and easing inflation concerns linked to energy markets. Reports suggested that both nations are nearing a preliminary memorandum aimed at ending the conflict, reopening the Strait of Hormuz, and laying the foundation for broader nuclear negotiations. Positive diplomatic developments, including mediation efforts from Pakistan, further improved market sentiment. However, President Trump cautioned that no final deal has been reached and warned that military action could resume if Iran fails to comply. Meanwhile, the dollar index slipped below the 98 mark, making bullion more attractive for global investors. Lower oil prices and reduced inflation worries also boosted sentiment in the precious metals market. In India, MCX June gold futures gained 0.5% to ₹1,52,950 per 10 grams, while July silver futures surged nearly 2.5% to ₹2,59,295 per kg, significantly outperforming gold on strong buying interest.

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