Mumbai, June 12 (IANS) Gold and silver prices traded higher on Friday, with precious metals surging by up to 2 per cent amid hopes of a peace deal in the ongoing West Asia conflict.

On the Multi Commodity Exchange (MCX), gold futures (August) increased as much as 1.11 per cent or Rs 1,668 to hit an intraday high of Rs 1,50,600 as of around 11:30 am.

The yellow metal was trading at Rs 1,49,916, up 0.66 per cent or Rs 948. It touched an intraday low of Rs 1,49,569, a gain of 0.42 per cent or Rs 637 from the previous close.

Meanwhile, silver futures (July) traded at Rs 2,42,143, higher by Rs 2,490 or 1 per cent.

The white metal touched an intraday high of Rs 2,44,817, jumping 2.15 per cent during the session so far. It recorded an intraday low of Rs 2,41,601, up 0.81 per cent or Rs 1,948 from the previous close.

Earlier in the day, gold and silver began the session at Rs 1,50,595 and Rs 2,42,776, respectively, on the commodity exchange.

According to commodity market experts, bullion remained under pressure overall and was headed for a second consecutive weekly decline as persistent inflation concerns and growing expectations of a US Federal Reserve rate hike continued to weigh on sentiment.

Analysts said precious metals rebounded sharply from six-month lows after US President Donald Trump indicated that the US and Iran could reach a peace agreement as early as this weekend.

However, gains remained limited amid continued uncertainty over the negotiations, with Iranian officials denying that a final agreement had been reached, according to them.

Optimism around a potential diplomatic breakthrough eased concerns over global energy supplies, triggering a decline in crude oil prices and improving broader market risk appetite, experts added.

Market participants will now track developments in US-Iran negotiations and upcoming commentary from the Federal Reserve for further direction in precious metal prices.

In international markets, COMEX silver traded at $66.94, up more than 4 per cent, while COMEX gold rose over 2 per cent to $4,203.70 per ounce.

Meanwhile, crude oil prices declined sharply, with US West Texas Intermediate (WTI) crude falling roughly 3 per cent to $85 per barrel. International benchmark Brent crude declined 1.59 per cent to $88.94 per barrel.

–IANS

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