Gold, silver prices jump on geopolitical tensions and currency fluctuations

Gold, silver prices jump on geopolitical tensions and currency fluctuations

Gold and silver prices witnessed a jump in Thursday's trade, owing to geopolitical uncertainties, currency fluctuations, and a general risk-on sentiment in global equities.

On COMEX, gold futures increased by $25.5 or 0.53% to $4,849 per ounce while silver futures jumped by $1.05 or 1.32% to around $81 per ounce.

The rise was fueled by Asian equities trading higher amid hopes of de-escalation in US-Iran tensions and expectations of a stable earnings season.

US futures extend previous Wall Street rally

US futures also witnessed a slight increase, extending the previous Wall Street rally that was fueled by strong earnings from major banks.

Kaynat Chainwala, AVP Commodity Research at Kotak Securities, attributed this trend to dollar weakness caused by soft US inflation-linked data and expectations of renewed US-Iran negotiations.

This supported safe-haven demand in the previous session despite a partial recovery of the greenback during the day.

Silver's rise tempered by macroeconomic uncertainty

Silver's rise was supported by industrial demand, but gains were tempered by broader macroeconomic uncertainty. This observation comes from Gaurav Garg, a research analyst at the Lemonn Markets desk.

The oil markets also remained volatile with Brent crude easing on expectations of improved supply flows and mixed geopolitical signals.