Gold, silver prices fall up to 1% on MCX as US-Iran ceasefire eases safe-haven demand
Synopsis
Gold and silver slipped on MCX even as COMEX prices edged higher — the divergence tells a story. A reported US-Iran ceasefire extension and nuclear talks have drained safe-haven demand from domestic markets, pushing gold down to ₹1,56,683 and silver to ₹2,68,381. The Strait of Hormuz shipping talks add another layer: if tensions truly ease, the commodity risk premium built into precious metals could unwind further.
Key Takeaways
MCX gold futures (June 5) fell to ₹1,56,683 per 10 grams on 29 May , down ₹242 or 0.15% .
MCX silver futures (July 3) declined to ₹2,68,381 per kg , down ₹1,156 or 0.43% .
COMEX gold gained 0.17% to $4,540 per ounce ; COMEX silver rose 0.25% to near $76 per ounce .
A tentative US-Iran ceasefire extension of 60 days and fresh nuclear talks, cited by a US official, reduced safe-haven demand.
US Vice President JD Vance confirmed the tentative understanding but said President Trump's approval remained uncertain.
Analysts expect geopolitical developments and safe-haven flows to remain key drivers of precious metal prices near term.
Gold and silver futures on the Multi Commodity Exchange (MCX) declined by up to 1% on Friday, 29 May, as easing geopolitical tensions between the United States and Iran reduced safe-haven demand for precious metals during the morning session.
MCX Price Movement
Gold futures (June 5) were trading at ₹1,56,683 per 10 grams, down ₹242 or 0.15% from the previous close of ₹1,56,925. At around 11:20 am IST, the yellow metal slipped as much as 0.38% or ₹609 to an intraday low of ₹1,56,316, while touching a session high of ₹1,57,197, up 0.17% or ₹272.
Silver futures (July 3) were trading at ₹2,68,381 per kg, down ₹1,156 or 0.43% from the previous close of ₹2,69,537. The white metal hit an intraday low of ₹2,67,500, a drop of 0.75% or ₹2,037, after touching a session high of ₹2,69,400.
International Markets Tell a Different Story
In contrast, global benchmarks edged higher. COMEX gold gained 0.17% to trade at $4,540 per ounce, while COMEX silver rose 0.25% to near $76 per ounce. The divergence between domestic and international prices reflects currency and contract-specific factors on Indian exchanges.
US-Iran Ceasefire Talks Weigh on Safe-Haven Appetite
The primary driver behind the softness in domestic precious metal prices is a reported easing of the US-Iran conflict. According to reports citing a US official, negotiators from both sides have reached a tentative agreement to extend the existing ceasefire — now in its third month — by a further 60 days, and to initiate fresh talks on Iran's nuclear programme.
US Vice President JD Vance confirmed that a tentative understanding had been reached, though he cautioned that it remained unclear whether President Donald Trump would approve the arrangement. Tensions had escalated in recent days after the US carried out strikes at certain locations in southern Iran, following which Iran also claimed retaliatory attacks.
Notably, discussions around unrestricted shipping through the Strait of Hormuz — a critical chokepoint for global oil and commodity flows — have also contributed to improved risk sentiment, according to market analysts.
What Market Experts Are Saying
According to market experts, gold remained near the $4,500 per ounce level after recovering in the previous session, with easing geopolitical tensions reducing concerns around inflation and interest rates. Analysts noted that silver continued to witness cautious trading amid ongoing volatility, and said that geopolitical developments and safe-haven demand are expected to remain key price drivers for precious metals in the near term.
With ceasefire extension talks still subject to final approval and Iran's nuclear negotiations at an early stage, precious metal prices are likely to remain sensitive to any fresh diplomatic or military developments in the coming sessions.
Point of View
Pointing to rupee-dollar dynamics and contract rollover pressures rather than a clean global signal. More broadly, the market's quick retreat from safe-haven positioning on unconfirmed ceasefire reports — with President Trump's approval still pending — suggests traders are pricing in diplomatic optimism that may be premature. Iran's nuclear talks have collapsed before, and the Strait of Hormuz remains a structural flashpoint. A single breakdown in negotiations could reverse today's move sharply.
NationPress
15 Jul 2026
Frequently Asked Questions
Why did gold and silver prices fall on MCX on 29 May?
Gold and silver declined on MCX on 29 May primarily because reports of a tentative US-Iran ceasefire extension and fresh nuclear talks reduced safe-haven demand for precious metals. Easing geopolitical tensions also lowered concerns around inflation and interest rates.
What were the MCX gold and silver prices on 29 May 2025?
MCX gold futures (June 5) were trading at ₹1,56,683 per 10 grams, down ₹242 or 0.15%, while MCX silver futures (July 3) were at ₹2,68,381 per kg, down ₹1,156 or 0.43% from the previous close.
What is the US-Iran ceasefire development that affected gold prices?
According to reports citing a US official, US and Iranian negotiators reached a tentative agreement to extend the existing ceasefire by 60 days and begin fresh talks on Iran's nuclear programme. US Vice President JD Vance confirmed the tentative understanding but said it was unclear whether President Trump would approve it.
How did international gold and silver prices move on the same day?
Unlike MCX, international markets edged higher — COMEX gold rose 0.17% to $4,540 per ounce and COMEX silver gained 0.25% to near $76 per ounce, reflecting a milder global reaction compared to the domestic decline.
What are the key factors to watch for gold and silver prices going forward?
Analysts say geopolitical developments — particularly the outcome of US-Iran nuclear talks, the status of the ceasefire, and shipping access through the Strait of Hormuz — will remain key drivers for precious metal prices in the near term. Any breakdown in diplomacy could quickly revive safe-haven demand.
