Iran has reopened the Strait of Hormuz, allowing all commercial ships to pass through. Additionally, President Trump has stressed that Iran will never close the Strait of Hormuz. Apart from this, a second round of mediation talks is also going to take place between Iran and America. Looking at these developments, there is an atmosphere of happiness in all the markets, from stock market to commodity market. There was a big boom in the American markets, and with it there was a lot of fluctuation in the prices of gold and silver. From the global commodity market to the domestic commodity exchange (MCX), there has been a strong rise in the prices of gold and silver.
Gold and silver prices in international market
After the news of reopening of the Strait of Hormuz, there was a huge jump in the prices of gold and silver in the global commodity market. Gold rose 1.48%—or $71.30 an ounce—to $4,879.60 an ounce. Similarly, silver prices also witnessed a spectacular rise; Silver rose 3.98%—or $3.132—to $81.842 an ounce.
How gold and silver prices changed in the domestic commodity market
At the domestic level too, a rising trend has been seen in the prices of gold and silver. On MCX, gold futures for May 5 delivery contract gained 0.97%—or ₹1,478—to close at ₹1,53,240 per 10 grams. Similarly, there was a big change in silver prices also; Silver futures for May 5 delivery contract gained 3.80%—or ₹9,451—to trade at ₹2,58,079 per kg. On an intraday basis, gold prices rose by nearly ₹2,000, while silver prices gained by ₹11,000.
Gold and silver rates in bullion market
According to IBJA.com, the price of 24-carat gold is trending above ₹1.51 lakh. The price of 23-carat gold is more than ₹1.50 lakh for 10 grams. The rate of 22-carat gold is ₹1.39 lakh for 10 grams, while the price of 18-carat gold is ₹1.14 lakh. The price of silver stood at ₹2.49 lakh for 1 kg. These rates are till 5:00 pm on 17th April. The news related to the opening of the Strait of Hormuz came after the bullion market was closed for the day. This means that a rise in the prices of gold and silver may be seen in the bullion market on Monday.