Mumbai, Jan 13 (Commodities Control)Gold and silver prices retreated on Monday as progress in ceasefire negotiations between Israel and Hamas reduced safe-haven demand. Qatar has presented a final draft agreement to both parties, aiming to end the conflict in Gaza. Talks in Doha, involving Israeli intelligence officials, U.S. President-elect Trump’s Middle East envoy, and Qatar’s prime minister, reportedly achieved a breakthrough.
On COMEX, the February gold contract is trading down 0.95%, while silver for March delivery has declined 2.63%. Market sentiment shifted as the ceasefire proposal raised hopes for reduced geopolitical tensions, which have been a key driver of precious metals in recent months.
U.S. President Joe Biden, in a call with Israeli Prime Minister Benjamin Netanyahu, stressed the urgency of halting hostilities and facilitating humanitarian aid. Negotiators aim to finalize the deal before Biden leaves office on Jan. 20.
The conflict, which began in October 2023 after a Hamas attack killed 1,200 Israelis and led to over 250 hostages, has severely impacted Gaza, with more than 46,000 reported deaths and widespread displacement.
Outlook
While the ceasefire proposal has pressured gold and silver prices, uncertainty over its implementation and the potential for renewed tensions may limit downside risks. Investors are also weighing broader economic factors, including inflation and central bank policies, which could influence demand for precious metals in the coming weeks.
(By Commoditiescontrol Bureau: +91-98201 30172)