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Precious metals traded with solid gains on Friday, 17 April, as sentiment towards safe-haven assets improved after Iran announced the reopening of the Strait of Hormuz, which pushed oil prices lower and eased some inflation concerns.

Comex gold futures rallied by $109 per troy ounce to reach a one-month high of $4,917, while silver futures surged $4.53 to $83.24, the highest level in a month. Both metals are heading for their fourth consecutive weekly gains, in which gold has surged 7.5% and silver 19.5%, considering today's high.

Along with geopolitical optimism, the fall in the US dollar is also supporting the rally. The US dollar fell to 93.6, the lowest level in six weeks, making greenback-denominated commodities, including bullion, more affordable for holders of other currencies.

Iran’s Foreign Minister, Abbas Araghchi, posted on X that the strait “is declared completely open” in line with the ceasefire in Lebanon and would remain open for the duration of the truce. Trump affirmed that the strait is “ready for full passage” in a social media post minutes later.

In a subsequent post, Trump said the US naval blockade on Iranian ships and ports “will remain in full force” until a deal is reached to end the conflict.

Trump said on Thursday that a deal to end hostilities with Iran was close. The two sides have been negotiating via Pakistan this week amid a ceasefire, which is due to end on 21 April.

Iran had blocked the key waterway for over a month to pressure the US to halt its attacks, and it also targeted ships attempting to cross. This disruption had sent energy prices soaring, forcing central banks to revise their inflation estimates higher and adopt a more cautious stance on further rate cuts.

Amid this, gold and silver had become less appealing to investors, as concerns grew that elevated energy prices could fuel inflation and keep global interest rates higher for longer.

The reopening of Hormuz was the most pressing issue for Trump, with the jump in fuel prices, including in the US, hurting him politically and frustrating American allies in Asia and Europe.

With reduced concerns over inflation, a sustained decline in oil prices could encourage the Federal Reserve to resume rate cuts to support economic growth. The yield on the 10-year Treasury fell to 4.23% from 4.32% late Thursday, and lower yields can ease borrowing costs for households and businesses.

In the domestic market, the near-month gold futures contract on MCX gained ₹2,348 per 10 grams, reaching a day’s high of ₹1,55,500 per 10 grams.

The yellow metal has ended the last three weeks higher and is likely to close the current week in the green, marking its biggest weekly surge since November.

Silver prices, which are more volatile than gold, have risen by ₹13,122 per kilogram to hit a day’s high of ₹2,61,750, the highest level in a month. With today’s rally, the metal has gained 7.70% so far in April, recovering nearly half of the 15% loss recorded in March, and is also on track for a fourth consecutive weekly gain.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments.

He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom.

During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles.

He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements.

His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.

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