Gold and silver prices experienced a decline of up to 5.6% following US President Donald Trump’s recent address on the Middle East conflict. This drop disappointed investors who were anticipating positive signals for a potential resolution. On the Multi Commodity Exchange (MCX), gold futures for June fell by 2.31%, reaching an intraday low of Rs 1,50,145 by 10:30 am.
Silver futures for May also saw a significant decrease, falling by 5.59% to hit an intraday low of Rs 2,29,888 on the MCX. Despite this decline, the white metal managed to touch an intraday high of Rs 2,42,800, showing a slight increase from the previous session.
In the global market, spot gold dropped by 2.26% to an intraday low of $4,650.30, while spot silver decreased by 4.7% to $71.50. COMEX gold traded at $4,813, down by 2.73%, and COMEX silver fell by approximately 6% to $71. Analysts noted that both gold and silver are facing a weak price structure, with limited safe-haven support from ongoing geopolitical tensions in the Middle East.
Despite earlier gains, precious metals reversed their trajectory after Trump suggested that the conflict was nearing an end but warned of potential strong actions against Iran. He also called for assistance from allies reliant on Middle Eastern oil due to disruptions in the Strait of Hormuz. Oil prices, on the other hand, rose, with Brent crude futures climbing by 5.24% to $106.47 per barrel and US WTI futures increasing by 4.5% to $104.64.
