US-Iran Peace Hopes Send Gold and Silver Prices Soaring on MCX

Gold and silver prices on the Multi Commodity Exchange (MCX) surged by up to 1% on August 4, amid hopes of a potential US-Iran peace deal. The MCX gold October contracts jumped 0.50% to ₹143,607 per 10 grams, while MCX silver September futures rose 1.11% to ₹219,150 per kg.

The increase in prices is attributed to the ongoing US-Iran conflict and its impact on energy markets, which has driven up inflation concerns, prompting interest rate hikes by major central banks. Despite gold being a hedge against inflation, higher interest rates weigh on the yellow metal as it is a non-yielding asset.

According to Jateen Trivedi, VP Research Analyst at LKP Securities, the market's focus will remain on the Federal Reserve's policy outlook, which continues to be the key driver for bullion prices. He also expects MCX gold to trade in the ₹142,000 to ₹145,000 range over the near term.

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold and silver with specific targets and stop-loss levels. Those holding long positions are advised to maintain stop-loss and book profits around the suggested targets.