Gold and silver prices have strengthened in both domestic and international markets as signs of de-escalation in Middle East tensions boosted investor sentiment. Hopes for a potential resolution to the US-Iran conflict have supported a recovery in precious metals, though analysts caution that gains could remain limited amid persistent macroeconomic pressures.
According to The Times of India’s live coverage on May 7, 2026, gold futures on the Multi Commodity Exchange (MCX) for June 2026 delivery rose by Rs 755, or about 0.5 per cent, to Rs 1,52,887 per 10 grams. MCX silver futures for July 2026 delivery surged Rs 3,800, or 1.5 per cent, to Rs 2,57,055 per kilogram. The previous session saw silver rally nearly 4 per cent while gold posted modest gains.
In the physical market, prices also climbed. In Mumbai, gold was quoted around Rs 1.50 lakh per 10 grams, up from Rs 1.47 lakh the previous day. Silver strengthened to about Rs 2.46 lakh per kilogram. In the national capital, gold of 99.9 per cent purity rose nearly 2 per cent to Rs 1,55,400 per 10 grams, while silver touched Rs 2.54 lakh per kilogram, data from the All India Sarafa Association showed.
Internationally, spot gold held steady near $4,688 per ounce, close to its highest level since late April, after gaining nearly 3 per cent in the prior session. US gold futures edged higher as well. The SPDR Gold Trust, the world’s largest gold-backed ETF, reported a marginal 0.2 per cent decline in holdings to 942.50 metric tonnes.
A Morgan Stanley report highlighted questions over gold’s traditional safe-haven appeal, noting that the metal weakened during the Iran conflict despite geopolitical risks. Gold dropped 14.5 per cent in March and remained under pressure even as equities rebounded.
Analysts pointed to a mix of factors. Vedika Narvekar of Anand Rathi Shares & Stock Brokers attributed the rebound to buying at lower levels and some moderation in crude oil prices. She noted, however, that elevated US bond yields and expectations of prolonged higher interest rates from the Federal Reserve could cap upside. Central bank buying continues to offer long-term support.
Satish Dondapati of Kotak Mutual Fund advised a measured approach to silver due to its volatility, recommending 15-20 per cent portfolio allocation to precious metals with gradual investments. Saumil Gandhi of HDFC Securities linked the recent rally to cooling geopolitical worries and softer oil and dollar pressures.
While optimism around a US-Iran peace proposal has improved sentiment, key issues such as Iran’s nuclear programme and Strait of Hormuz access remain unresolved. Broader trends in oil prices, US monetary policy, and economic data will likely continue to influence precious metals in the near term.
