Gold and silver prices on the Multi Commodity Exchange experienced a modest decline on Thursday, influenced by a retreat in US Treasury yields from multi-year highs and a rally in global equities, despite escalating tensions between Iran and the US. In the domestic market, silver futures for July 2026 delivery decreased by Rs 1,350, or 0.5%, settling at Rs 2,72,915 per kg. Gold futures for June 2026 delivery declined by Rs 206, settling at Rs 1,59,800 per 10 grams. Iran on Wednesday indicated that it was considering a new proposal from the US aimed at resolving the ongoing conflict in the Middle East. Meanwhile, US President Donald Trump characterised the discussions as being on the “borderline” between reaching an agreement and the possibility of renewed military action. “It resides precisely on the threshold, trust me…If we do not obtain the correct answers, the situation can deteriorate rapidly. “We’re all ready to go,” Trump told, emphasising that the opportunity for diplomacy may soon diminish.
Esmaeil Baqaei stated that Tehran had “received the points of view of the American side” and was currently reviewing them. He reiterated Iran’s demands for the release of frozen assets and an end to the US blockade of Iranian ports. Iran’s chief negotiator, Mohammad Bagher Ghalibaf, previously accused the US of attempting to reignite hostilities in light of Trump’s recent threats. He cautioned of a “forceful response,” while Iran’s Revolutionary Guards indicated that any resurgence of conflict would extend well beyond the Middle East. “The enemy’s movements, both overt and clandestine, show that despite economic and political pressure, it has not abandoned its military objectives and is seeking to start a new war,” Ghalibaf said.
While the deal remains elusive, the ceasefire established on April 8, which halted open hostilities between Iran and the United States-Israel, is increasingly becoming fragile. Bond yields had sharply cooled down overnight, but resumed to record gains on Thursday morning. As the US dollar retreated from a six-week peak and oil prices experienced a decline of approximately 6%, the yield on benchmark US 10-year notes decreased by 9.4 basis points, settling at 4.576% on Wednesday. There’s renewed positive sentiment because oil prices are down, yields are down’, said a source. However, oil prices and bond yields experienced a slight increase on Thursday morning. The yield on benchmark US 10-year notes increased to 4.584%, while Brent crude futures advanced by more than 0.8% to $106 per barrel.
Meanwhile, minutes from the Federal Reserve’s April meeting indicated that a majority of the American central bank’s policymakers believed “some policy firming would likely become appropriate” if inflation remains persistently above the 2% target. Additionally, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, reported a decline in its holdings by 0.2%, bringing the total to 1,041.74 metric tonnes on Tuesday. In the international market, spot gold experienced a decline of 0.2%, trading at $4,534.69 per ounce. Spot silver decreased by 0.8% to $75.40 per ounce, while platinum experienced a decline of 0.7%, settling at $1,936.10. Palladium also saw a reduction, falling by 0.4% to $1,365.12.