Sri Vijaya Puram (Port Blair), April 15: Global financial markets reflected cautious optimism on Wednesday as easing tensions between the United States and Iran steadied gold prices, lifted equities, and dragged crude oil lower, signalling a shift in investor sentiment amid hopes of renewed diplomatic engagement.
Gold prices remained largely flat in early trade, with MCX gold May futures inching up just 0.02 per cent to ₹1,53,305 per 10 grams. The muted movement comes as geopolitical risks begin to soften, reducing the immediate appeal of safe-haven assets like bullion.
Analysts indicate that gold could regain upward momentum if it sustains above ₹1,55,000, potentially testing levels between ₹1,57,000 and ₹1,58,000. On the downside, a breach below ₹1,54,000 may trigger a correction towards ₹1,52,000 or even ₹1,50,000.
Silver, however, outperformed gold in the commodities segment, witnessing stronger buying interest. MCX silver May futures climbed 0.83 per cent to ₹2,54,842 per kg. Market experts noted that resistance lies in the ₹2,60,000-₹2,63,000 range, with further upside potential toward ₹2,70,000 if momentum sustains.
In the previous session, gold had closed nearly flat at ₹1,53,216, while silver futures saw marginal pressure, slipping 0.1 per cent.
Equities surge as volatility cools
Indian equity benchmarks opened sharply higher, buoyed by easing geopolitical concerns and falling oil prices. The BSE Sensex surged over 1,300 points, or 1.70 per cent, to trade at 78,150.54 in early trade. Similarly, the Nifty 50 advanced 1.61 per cent to 24,237.70.
The rally was supported by a sharp decline in market volatility. The India VIX dropped 15.4 per cent to 17.34, indicating reduced uncertainty and improved investor confidence.
Broader markets outperformed frontline indices, with midcap and smallcap stocks rising over 2 per cent each. Sectorally, PSU banks and IT stocks led the gains, while pharma stocks lagged behind.
Market participants attributed the surge to improving global cues, particularly signals from Donald Trump suggesting that tensions with Iran could ease soon.
Oil prices decline on supply optimism
Crude oil prices fell for the second consecutive session as expectations of resumed negotiations between Washington and Tehran raised hopes of easing supply disruptions in West Asia.
Global benchmark Brent crude slipped below the $95 per barrel mark, touching a low of $94.42 during Tuesday’s session before stabilising near $94.66 in early Wednesday trade. Meanwhile, West Texas Intermediate crude declined to around $90.65 per barrel.
The softening trend follows recent signals that diplomatic talks could resume within days, potentially defusing tensions that had escalated after the closure of the Strait of Hormuz and a blockade on Iranian ports.
Earlier fears of supply disruptions had pushed oil prices higher and triggered volatility across global markets. However, renewed optimism around negotiations has eased concerns about a prolonged energy shock.
Globally, gold held near recent highs, hovering around $4,850 an ounce after gaining over 2 per cent in the previous session. The metal had initially surged amid safe-haven demand but later faced pressure as investors shifted focus to riskier assets.
Since the onset of the conflict in late February, gold prices have declined nearly 8 per cent, partly due to liquidity pressures that forced investors to sell bullion to cover losses in other asset classes.
Analysts note that the trajectory of commodities and equities in the coming days will largely depend on the progress of diplomatic efforts between the US and Iran. Any concrete breakthrough could further stabilise markets, while setbacks may revive volatility.
For now, easing geopolitical tensions, cooling oil prices, and declining volatility have combined to create a supportive environment for equities, while keeping gold range-bound and boosting silver’s relative appeal.
