Gold, Silver Rate Today Live Updates: MCX Gold, MCX Silver prices drop as oil surges on continued Strait of Hormuz blockade

Gold and silver prices began Wednesday’s session on a firmer note on the Multi Commodity Exchange of India, following the United States’ decision to prolong its ceasefire with Iran. The move helped calm fears of a sharp rise in inflation and reduced expectations that interest rates would remain elevated for an extended period.

On Tuesday, US President Donald Trump announced that the truce with Iran would be continued indefinitely, just hours before its scheduled expiry. However, the statement appeared to be one-sided, as there was no immediate response from Iran or US ally Israel on whether they would support extending the ceasefire, which has been in place for the past two weeks.

In the domestic derivatives market, silver futures for May 2026 delivery on MCX surged by Rs 4,800, or 2%, to Rs 2,49,423 per kilogram. Gold futures for June 2026 delivery also moved higher, rising Rs 2,000, or 1.3%, to Rs 1,53,699 per 10 grams.

Gold and silver prices began Wednesday’s session on a firmer note on the Multi Commodity Exchange of India, following the United States’ decision to prolong its ceasefire with Iran. The move helped calm fears of a sharp rise in inflation and reduced expectations that interest rates would remain elevated for an extended period.

On Tuesday, US President Donald Trump announced that the truce with Iran would be continued indefinitely, just hours before its scheduled expiry. However, the statement appeared to be one-sided, as there was no immediate response from Iran or US ally Israel on whether they would support extending the ceasefire, which has been in place for the past two weeks.

In the domestic derivatives market, silver futures for May 2026 delivery on MCX surged by Rs 4,800, or 2%, to Rs 2,49,423 per kilogram. Gold futures for June 2026 delivery also moved higher, rising Rs 2,000, or 1.3%, to Rs 1,53,699 per 10 grams.

The sharp rise in gold ETF investments was supported by a strong rally in gold prices and heightened volatility in equity markets. Gold prices climbed around 63 per cent during FY26, reaching close to ₹1.5 lakh by March 31, 2026, driven by increased safe-haven demand amid geopolitical tensions.

Meanwhile, equities underperformed, with the BSE Sensex falling about 5 per cent over the year and declining nearly 15 per cent in the final quarter. This shift in sentiment led investors to channel funds into gold ETFs, which attracted net inflows of ₹31,561 crore in the March quarter alone, marking the highest quarterly inflow of the year.

According to Vikram Dhawan, commodities head and fund manager at Nippon India Mutual Fund, investment demand and jewellery demand for gold have historically moved in opposite directions during periods of sharp price increases.

The sharp rise in gold ETF investments was supported by a strong rally in gold prices and heightened volatility in equity markets. Gold prices climbed around 63 per cent during FY26, reaching close to ₹1.5 lakh by March 31, 2026, driven by increased safe-haven demand amid geopolitical tensions.

Meanwhile, equities underperformed, with the BSE Sensex falling about 5 per cent over the year and declining nearly 15 per cent in the final quarter. This shift in sentiment led investors to channel funds into gold ETFs, which attracted net inflows of ₹31,561 crore in the March quarter alone, marking the highest quarterly inflow of the year.

According to Vikram Dhawan, commodities head and fund manager at Nippon India Mutual Fund, investment demand and jewellery demand for gold have historically moved in opposite directions during periods of sharp price increases.

Data from the Association of Mutual Funds in India (AMFI) showed that inflows in Gold ETFs surged 364 per cent year-on-year, growing more than four-and-a-half times, making gold ETFs the fastest-expanding segment across all fund categories, including equity, debt and hybrid. The figure for FY26 also far exceeded the earlier annual inflow band of ₹700–15,000 crore.

Incremental inflows rose sharply as well, increasing by ₹54,015 crore compared to the previous year, well above the historical range of ₹2,500–10,000 crore. In contrast, other mutual fund segments delivered mixed performance on a year-on-year basis. Debt and equity funds witnessed declines of 84 per cent and 17 per cent, respectively, while index funds saw a 56 per cent drop. On the other hand, hybrid funds and other ETFs recorded growth of 30 per cent and 65 per cent.

Data from the Association of Mutual Funds in India (AMFI) showed that inflows in Gold ETFs surged 364 per cent year-on-year, growing more than four-and-a-half times, making gold ETFs the fastest-expanding segment across all fund categories, including equity, debt and hybrid. The figure for FY26 also far exceeded the earlier annual inflow band of ₹700–15,000 crore.

Incremental inflows rose sharply as well, increasing by ₹54,015 crore compared to the previous year, well above the historical range of ₹2,500–10,000 crore. In contrast, other mutual fund segments delivered mixed performance on a year-on-year basis. Debt and equity funds witnessed declines of 84 per cent and 17 per cent, respectively, while index funds saw a 56 per cent drop. On the other hand, hybrid funds and other ETFs recorded growth of 30 per cent and 65 per cent.

Investors also tracked proceedings at the Senate Banking Committee, where former Federal Reserve Governor Kevin Warsh is being considered for the role of Fed chief. Warsh called for "regime change" at the US central bank, including a revised approach to managing inflation and changes in communication practices that may limit forward guidance on monetary policy.

"Traders will be watching and listening very closely to (Warsh's) comments. With that hearing, you should expect lots of ups and downs in volatility," Haberkorn added.

Investors also tracked proceedings at the Senate Banking Committee, where former Federal Reserve Governor Kevin Warsh is being considered for the role of Fed chief. Warsh called for "regime change" at the US central bank, including a revised approach to managing inflation and changes in communication practices that may limit forward guidance on monetary policy.

"Traders will be watching and listening very closely to (Warsh's) comments. With that hearing, you should expect lots of ups and downs in volatility," Haberkorn added.

Spot silver declined 3.9 per cent to $76.76 per ounce, platinum fell 2.7 per cent to $2,033.37, and palladium slipped 0.6 per cent to $1,541.56.

Spot silver declined 3.9 per cent to $76.76 per ounce, platinum fell 2.7 per cent to $2,033.37, and palladium slipped 0.6 per cent to $1,541.56.

"Stronger yields and the dollar are putting pressure on gold, along with a lot of headlines and mixed signals coming out about the Iran situation, causing energies to move higher, putting pressure on metals," Bob Haberkorn, senior market strategist at RJO Futures told Reuters.

"Stronger yields and the dollar are putting pressure on gold, along with a lot of headlines and mixed signals coming out about the Iran situation, causing energies to move higher, putting pressure on metals," Bob Haberkorn, senior market strategist at RJO Futures told Reuters.

Gold prices continued to decline on Tuesday, pressured by a stronger US dollar and rising Treasury yields, while market participants waited for developments on potential US-Iran talks and the confirmation hearing of Federal Reserve Chair nominee Kevin Warsh.

Spot gold dropped 2.2 per cent to $4,712.04 per ounce by 1:46 p.m. EDT (1746 GMT), marking its lowest level in more than a week. US gold futures for June delivery also settled 2.3 per cent lower at $4,719.60.

The US dollar strengthened 0.2 per cent against a basket of currencies, making dollar-denominated bullion more expensive for investors holding other currencies. At the same time, benchmark 10-year US Treasury yields moved higher, adding further pressure on gold prices.

Gold prices continued to decline on Tuesday, pressured by a stronger US dollar and rising Treasury yields, while market participants waited for developments on potential US-Iran talks and the confirmation hearing of Federal Reserve Chair nominee Kevin Warsh.

Spot gold dropped 2.2 per cent to $4,712.04 per ounce by 1:46 p.m. EDT (1746 GMT), marking its lowest level in more than a week. US gold futures for June delivery also settled 2.3 per cent lower at $4,719.60.

The US dollar strengthened 0.2 per cent against a basket of currencies, making dollar-denominated bullion more expensive for investors holding other currencies. At the same time, benchmark 10-year US Treasury yields moved higher, adding further pressure on gold prices.