Gold, Silver Prices Rise as Dollar Weakens on US-Iran Peace Hopes

Gold and silver prices moved higher on Thursday as the US dollar stayed near a six-week low, making bullion more attractive for buyers using other currencies. Lower US Treasury yields also supported the upward trend, while improving optimism around a possible US-Iran peace agreement lifted market sentiment. Spot gold rose to around $4,821 per ounce, and US futures also posted gains near $4,844, reflecting renewed buying interest in precious metals.

The recent volatility in bullion prices has puzzled many investors because gold is traditionally viewed as a safe-haven asset during geopolitical tensions. However, the current market behaviour suggests that factors such as dollar weakness, bond yields, inflation expectations, and shifting interest-rate outlooks are having a stronger influence than conflict-driven fear alone. Even though tensions in the Middle East had earlier pushed investors toward safety, hopes of a diplomatic resolution are now changing the direction of prices.

Market analysts believe that optimism surrounding a possible ceasefire between the United States and Iran is one of the key reasons behind the latest recovery in gold. A softer dollar has further strengthened this momentum by making gold cheaper in global markets. If prices manage to break above the $4,900 level, traders see the possibility of a move toward the major psychological mark of $5,000 per ounce.

Silver also remained firm alongside gold, supported by the same global cues. Investors are closely watching developments in the Strait of Hormuz and the broader energy market, as any movement in crude oil prices can directly impact inflation concerns and influence precious metal demand.

In the Indian bullion market, prices remained elevated with mixed regional trends. In Bengaluru, 22K gold was priced at ₹14,660 per gram, while 24K gold stood at ₹16,000 per gram. Silver was quoted at ₹2,68,800 per kg. In Mumbai, silver spot prices were around ₹2,49,019 per kg, while pure gold rates remained strong due to firm international signals and rupee-related support.

The near-term outlook for gold and silver remains positive but highly volatile. Continued weakness in the dollar and progress in US-Iran peace talks could keep prices supported. At the same time, any sudden rise in geopolitical tensions, stronger inflation data, or movement in oil prices may quickly reverse the current gains, keeping traders cautious in the short term.