On the COMEX, gold rose 1.43% to $4,633.70 per ounce. Silver outperformed, gaining 2.36% to $75.315 per ounce.
Oil prices ease on Iran deal hopes
Crude prices retreated after US President Donald Trump indicated “great progress” toward a final agreement with Iran. Brent crude slipped toward $108 per barrel, while West Texas Intermediate hovered near $100 per barrel, extending Tuesday’s nearly 4% decline.
The cooling in oil prices offered some support to bullion, as lower crude reduces inflation concerns and can ease pressure on central banks to maintain higher interest rates.
Market drivers and outlook
According to Kaynat Chainwala, AVP – Commodity Research, Kotak Securities, bullion is seeing “modest recovery on dip buying and slight easing in oil prices,” though gains remain capped due to lingering uncertainty around the US-Iran situation, a firm dollar, and caution ahead of key US economic data.
She noted that markets are closely watching the upcoming US non-farm payrolls report, with expectations of stronger job growth and wages. A stronger reading could reinforce expectations that the US Federal Reserve will keep interest rates elevated for longer, which typically weighs on gold.
Echoing a cautious tone, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said gold is trading slightly positive in domestic markets, supported by buying near key levels.
“The sentiment remains cautious as markets await US unemployment data and non-farm payrolls, which will guide interest rate expectations and gold’s near-term direction,” he said.
Underlying demand remains supportive
Despite near-term volatility, physical demand trends—particularly for bars and coins—remain firm, offering some support to prices. However, analysts say strong dollar, and uncertainty over monetary policy could keep bullion range-bound in the near term.