Gold, silver rates today: Comex gold jumps $65/oz; silver rebounds $2 as oil prices retreat and dollar weakens

Precious metals rebounded in Tuesday’s trade on 2 June, supported by a retreat in crude oil prices and a softer US dollar. In the previous session, both gold and silver extended their losing streak to a second straight day.

Comex gold rebounded by $65 per ounce to the day’s high of $4,571, while silver futures recovered $2.1 to touch an intraday high of $77.35 per ounce.

Analysts said precious metals drew support from a pullback in crude oil prices, which helped ease fears of an inflation shock stemming from tensions in West Asia. The yield on the benchmark 10-year US Treasury note also fell 1.1%, reducing the opportunity cost of holding non-yielding bullion.

Crude oil prices surrendered nearly half of Monday’s gains after US President Donald Trump said negotiations with Iran were continuing at a “rapid pace”, easing concerns that talks had completely broken down.

“Additional support came from a partial ceasefire announcement between Hezbollah and Israel, helping stabilise geopolitical risk sentiment. Markets are now focused on Friday’s US nonfarm payrolls report and commentary from Federal Reserve officials for clues on the interest-rate path,” domestic brokerage firm Kotak Securities said.

The brokerage added that while gold remains in a short-term downtrend below $4,630, persistent geopolitical uncertainty, growth risks, currency volatility, and potential downside in equities continue to provide a strong long-term bullish foundation for bullion.

During Monday’s session, both Comex gold and silver had closed lower after Iran reportedly said it would suspend the exchange of messages with the US in response to Israel’s intensifying military operations in Lebanon.

Precious metals witnessed sharp volatility throughout May as hopes of de-escalation, along with conflicting statements from both the US and Iran, kept prices largely directionless.

The tensions in the region, which have now stretched into a fourth month, have kept energy prices elevated as the effective closure of the Strait of Hormuz disrupted crude supplies, prompting several Middle Eastern nations to reduce production.

MCX gold reclaims ₹1.60 lakh level; silver tops ₹2.71 lakh

In the domestic market, the near-month gold futures contract on MCX jumped ₹6,458 per 10 grams to touch the day’s high of ₹1,60,710, the highest level since May 15. If the rally sustains through the close, it would snap the yellow metal’s two-day losing streak.

Silver prices also rallied sharply on MCX, gaining ₹5,248 per kilogram to hit the day’s high of ₹2,71,411.

Domestic gold prices also received support from weakness in the Indian rupee. The softer rupee helped offset some of the pressure from global market uncertainty and supported gains in the domestic bullion market, according to Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities.

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