Silver, gold script sharp comeback as US-Iran ceasefire calms global jitter
New Delhi (PTI): Silver prices surged Rs 11,000 to Rs 2.51 lakh per kilogram in the national capital on Wednesday, while gold advanced to Rs 1.56 lakh per 10 grams amid strong global cues after the US and Iran agreed to a two-week ceasefire.
According to the All India Sarafa Association, the white metal zoomed by Rs 11,000, or nearly 5 per cent, to Rs 2,51,000 per kg (inclusive of all taxes) from Tuesday's closing level of Rs 2,40,000 per kg.
Gold of 99.9 per cent purity also appreciated by Rs 3,200, or 2.09 per cent, to Rs 1,56,400 per 10 grams (inclusive of all taxes). It settled at Rs 1,53,200 per 10 grams in the previous market session.
Analysts said bullion prices strengthened as geopolitical tensions in West Asia eased, triggering a broader relief rally across global financial markets.
Gold maintained strong gains and approached a three-week high on Wednesday as improved global risk sentiment, along with a pullback in US dollar and crude oil prices, boosted demand for precious metals, Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.
The positive momentum came after an agreement reached just before a self-imposed deadline by US President Donald Trump, who confirmed a pause in military action, conditional on the reopening of the Strait of Hormuz.
Iran also signalled that safe passage through the Strait would be possible during the ceasefire period, further easing supply concerns.
In the overseas markets, spot gold gained USD 97.48, or 2.07 per cent, to USD 4,803.33 per ounce, while silver was trading 6 per cent higher at USD 77.33 per ounce.
"Spot gold in the international markets surged on Wednesday after the announcement of a temporary ceasefire in the Iran war," Praveen Singh, Head of Commodities at Mirae Asset Sharekhan, said.
He added that commodities, bonds and equities rallied after crude oil prices crashed nearly 20 per cent on the ceasefire announcement, as a decline in energy rates will reduce interest rate hike chances by global central banks, including the US Federal Reserve.
Echoing similar sentiments, Kaynat Chainwala, AVP Commodity Research, Kotak Securities, said precious metal prices rose up to 7 per cent as the dollar slipped below 99 on US-Iran ceasefire relief, temporarily easing fears of prolonged energy supply shocks and the associated inflationary fallout.
The rally in bullion ran alongside a broader relief rally in global markets. Throughout the conflict, gold's traditional safe-haven appeal has been tempered by liquidity stress, as investors were compelled to liquidate bullion positions to cover losses elsewhere in their portfolios, she added.
"With the ceasefire conditional and compliance around the Strait of Hormuz still uncertain, any signs of a breach or collapse could quickly reverse sentiment and renew downside risk across precious metals," Chainwala said.
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Trump arrives in China for talks with Xi
Beijing (PTI): US President Donald Trump arrived in China on Wednesday for a three-day state visit during which he will discuss a host of global issues, including the Iran war, with Chinese President Xi Jinping.
Trump, who is visiting China at the invitation of President Xi, was received by Chinese Vice President Han Zheng at the airport.
The leaders of the world's two largest economies will hold their seventh face-to-face talks. They last met face-to-face in October 2025 in Busan, South Korea.
The US President arrived in China on his second visit in nine years to clinch a trade deal, to end the frictions over tariffs that affected its over USD 525 billion exports to the US.
Trump, who is accompanied by top CEOs, was the last US president to visit China in 2017, during his first term.
President Trump would have a bilateral meeting with Xi on Thursday, US Principal Deputy Press Secretary Anna Kelly said on Sunday.
The two leaders will meet again on Friday for a bilateral tea and working lunch, she said, adding that the US plans to host the Chinese leader for a reciprocal visit later this year.
Ahead of Trump's arrival, Chinese Vice-Premier He Lifeng and Scott Bessent completed the final round of trade negotiations in South Korea, details of which are not known.
The talks focused on trade and tariffs, Artificial Intelligence and technology, Taiwan and US' arms sales to Taipei, Iran and West Asia security and rare earths and supply chains.
Trump's schedule included a visit to the Temple of Heaven, a complex of imperial temples where emperors would pray for a good harvest.
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Ahead of his departure for Beijing, Trump told the media in Washington he would be talking with Xi about trade more than anything else.
He plans to sign more deals with China to buy more American food and aircraft. The two countries also plan to set up a Board of Trade with China to address differences between the countries.
From a trade point of view, China looks to reap a rich harvest as Trump is accompanied by top CEOs of US multinational giants, including Tesla chief Elon Musk and Apple CEO Tim Cook, who have well-entrenched business in China.
Apple has regained the top spot in China's competitive smartphone market as of early 2026, driven by a 28 per cent surge in iPhone shipments.
In April, Tesla's China-made vehicle sales (including exports) reached 79,478, a 36 per cent year-over-year increase, signalling a production rebound.
The top US business leaders will be allowed to mingle with their Chinese counterparts at an exclusive international business club, according to Chinese officials.
The global focus on the summit, however, would be on any possible outcome that could end the US-Israeli-Iran war and end the blockade of the Strait of Hormuz.
Ahead of Trump's visit, Iranian Foreign Minister Abbas Araghchi made his first visit to Beijing after the war and held talks with his Chinese counterpart Wang Yi.
The US watched his visit closely as China is the largest importer of Iranian oil and shares strategic defence ties with Tehran, and has considerable influence over Iran.
After talks with Araghchi, Wang called on Iran to reopen the Strait of Hormuz as soon as possible, even as it appreciated Tehran's commitment not to develop nuclear weapons, a prime demand of Trump to end the war.
Commenting on Wang-Araghchi talks, US Secretary of State Marco Rubio said, "I hope the Chinese tell him what he needs to be told. And that is what you are doing in the Strait, which is causing you to be globally isolated. You're the bad guy in this."
China's anxieties over the Gulf war increased, especially after Trump imposed a blockade of Iranian ports, restricting Iran's oil exports to China.
Bert Hoffman, former World Bank country director for China, said China wants the Iran war to end because it has many partners in the region, including Saudi Arabia, the UAE and Kuwait. "So they don't like to see wars, they like to have stability," he said.
In its editorial on Trump's visit, state-run Global Times said Xi has held multiple telephone conversations and meetings with him, which have helped correct the course of the bilateral relationship and steer it clear of hidden dangers at critical moments.
For China-US relations to truly stabilise and improve in the future, the most fundamental step is to fully and faithfully implement the important consensus reached by both leaders, it said.
From China's point of view, the Taiwan issue was expected to figure prominently in the talks.
Last week, China's Foreign Minister Wang told US Secretary of State Marco Rubio, during their telephone talks, that the US should make the right choice about the self-ruled Taiwan.
China claims Taiwan as part of its own and has been ramping up military pressure on the island with periodic military drills around the island.
VIDEO | Beijing: US President Donald Trump arrives in China for high stakes meeting with Chinese President Xi Jinping.
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