Gold and Silver prices have gained momentum, snapping their losing streak as US President Donald Trump signalled a possible cease-fire. A softer dollar and easing of fuel prices also impacted sentiment.
In international markets, spot gold climbed back to $4,557/oz, while spot silver was quoted near the $73/oz level. On MCX, the April delivery contract for gold is up nearly 4%, trading at Rs 1,43,996 per 10 grams, and the white metal too is extending gains as the May delivery contract of silver rose by more than 5%, quoted at Rs 2,35,538 per kg.
Precious metals have previously been under severe selling pressure, as gold and silver hit their lowest levels since November 2025 on Monday. Spot gold fell below the $4,200/oz mark, while spot silver tumbled down to an intra-day low of $61/oz in the same session.
3 reasons why Gold, silver prices are surging
#1 Prospects of de-escalation driving momentum for precious metals
As per media reports, US President Donald Trump’s administration has offered a 15-point ceasefire plan to Iran, aiming to negotiate the conflict in the Middle East. Market optimism over a potential halt on the Iranian war stoked the safe-haven appeal of gold and silver, which helped lift these assets.
Then comes the dollar index, which fell from its monthly record high levels over these reports. The easing of the dollar index helped lift the precious metals, as gold rose over the crucial $4,500/oz mark while silver too climbed up the $70/oz mark.
A soft dollar makes precious metals less expensive for other currency holders, thereby aiding demand.
#2 Crude oil prices ease from record highs
The ceasefire optimism has also cooled off the much elevated crude prices. Brent crude fell below the $100/bbl mark as Al-Jazeera reported that Tehran will allow the transit of non-hostile ships through the crucial trade route — the Strait of Hormuz.
Following this, Brent crude fell to an intraday low of $93/bbl, while the US benchmark WTI was quoted near the $87/bbl level. The easing oil prices helped relieve some inflationary concerns, adding to the upside for gold and silver.
“Gold’s nearly 4% surge on MCX and silver’s sharp rebound were driven by a softer US dollar and easing inflation concerns as crude oil prices corrected. The pullback in energy markets helped temper expectations of higher global interest rates, offering additional support to precious metals,” said Hareesh V, Head of Commodity Research at Geojit Investments.
#3 Dollar remains soft
The dollar’s weakness is another key factor that led to the sudden surge in prices. Currency markets took a breather on Wednesday, with traders cautious over US President Donald Trump’s efforts to bring an end to the war with Iran. Tehran however, denied that direct negotiations have taken place, keeping investors on edge. The Dollar Index is hovering around the 99 mark.
Gold and Silver: Near term outlook
However, according to Hareesh V the upside in precious metals is driven by profit booking as attractive levels triggered renewed demand alongside short coverings that lifted the price.
“Gold and silver may see a mild near‑term recovery, but breaking recent highs looks difficult. While supportive geopolitics could underpin sentiment, a firm US dollar is likely to cap strong upside, keeping price movements relatively restrained for now,” the analyst said.
