New Delhi, Aug. 5 -- Gold and silver prices extended their gains for the second consecutive session on Wednesday, 5 August, as optimism over a potential diplomatic breakthrough between the US and Iran eased concerns over inflation and reduced expectations of higher interest rates from the US Federal Reserve.

The precious metals also drew support from a weaker US dollar. Comex gold surged another $173 per troy ounce to $4,325, its highest level since mid-June. Comex silver futures extended Tuesday's rally, climbing another $2.74 to $63 per troy ounce.

Signs of easing tensions in the Middle East supported investor sentiment as reports indicated that negotiations between Iran and Oman over the reopening of the Strait of Hormuz were progres...