US-Iran Truce Clouds Precious Metal Outlook, Crude Prices Rebound

Precious metals are poised to remain volatile and trade within a specific range due to ongoing uncertainty surrounding the fragile US-Iran truce, according to market experts.

Crude oil prices declined sharply after the ceasefire announcement, with Brent crude falling below $90 per barrel and US crude slipping close to $80 in early trade on Monday. However, prices later recovered, with Brent crude trading at around $91.93 per barrel and US crude standing at $84.77 per barrel.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, noted that the market viewed the truce as a meaningful step towards easing tensions after two weeks of conflict. 'Markets have taken this as the first genuine step towards de-escalation in two weeks,' he said.

Despite Monday's decline, Brent crude remains over 20% higher so far this month, with key support at $89-90 per barrel and immediate trading range at $92-95. A move above $101 would signal a return of the uptrend for Brent crude.