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Informist, Tuesday, Jun. 2, 2026

By Reshma Ravi

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India and the COMEX rose Tuesday, as the rupee fell sharply against the dollar. Prices also rose as a partial ceasefire between Hezbollah and Israel lifted market sentiment. However, uncertainty around US-Iran peace talks, along with inflation fears and prospects of interest rate hikes by the US Federal Reserve, is likely to cap the rise in gold prices. 

At 1615 IST, the most active June contract of GOLD was up 0.7% at INR 160,310 per 10 grams on the MCX. The same-month contract on the COMEX was up 1.3% at $4,564.5 per ounce. The most active July SILVER contract on the MCX was up 1.4% at INR 269,774 per kilogram, and the same-month contract on COMEX was up 2% at $76.84 per ounce.

Precious metals in the domestic market rose as the rupee fell sharply against the dollar, analysts said. The rupee ended 0.3% lower at 95.2650 against the dollar. When the rupee depreciates against the dollar, gold prices in the domestic market adjust because the precious metal is priced in rupees. 

"The US President Donald Trump said that talks with Israeli PM (prime minister) to stop attacking Lebanon supported gold prices at lower levels," Manoj Jain, director of Prithvi Finmart said. Lebanon on Monday announced a partial ceasefire between Hezbollah and Israel, in what would amount to a limited de-escalation of a conflict that has killed thousands of people and inflamed the broader war with Iran. Trump said he has asked Israeli Prime Minister Benjamin Netanyahu to pull his troops back from Lebanon's capital, Beirut, and also spoke with Hezbollah representatives, who "agreed to stop shooting" at Israeli forces, Al Jazeera reported.

Market sentiment was also lifted by lower ‌Treasury yields, Jain said. The yield on the benchmark 10-year US Treasury note ticked lower, reducing the opportunity cost of holding non-yielding bullion.

However, the rise in prices is likely to be capped by uncertainty over peace talks between the US and Iran. "Geopolitical uncertainty remained elevated after Iranian media reported that Tehran suspended communications with Washington following Israeli attacks in Lebanon," analysts at Kedia Advisory said. Gains are also likely to be capped as markets are increasingly pricing in a Federal Reserve interest rate hike before year-end after US inflation accelerated, largely driven by West Asia-related energy pressures, analysts added. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal.

Market participants are now awaiting a series of US labour market reports this week, along with comments by Federal Reserve officials, for clues on the outlook for interest rates.

Meanwhile, Commerzbank has lowered its forecast for silver prices to $80 per troy ounce from $90 per troy ounce by the end of the year. Weaker industrial demand is likely to weigh on silver prices. "According to the latest assessment by the Silver Institute, industrial demand is set to decline for the second year running, falling to a four-year low," it said in a report.

Outlook for the rest of the session:

--MCX gold seen at INR 159,000–INR 162,500 per 10 grams

--COMEX gold seen at $4,510–$4,600 an ounce

--MCX silver seen at INR 265,000-INR 273,000 per kg

--COMEX silver seen at $73.00-$80.00 an ounce

End

US$1 = INR 95.26

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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