Gold and silver prices fell in global markets due to a stronger US dollar and renewed geopolitical tensions stemming from recent US military actions against Iran. Spot gold decreased by nearly 2% to $4,368.99 per ounce, while COMEX gold was down by 1.80% to $4,367.90 per ounce. Similarly, silver prices faced pressure, with spot silver declining over 3% to $71.94 per ounce, and COMEX silver trading 3.56% lower at $72.22 per ounce.
In the domestic market, the Multi Commodity Exchange (MCX) remained closed on Thursday for Eid al-Adha. Experts in the commodity market noted that gold prices were under pressure due to uncertainties surrounding the US-Iran negotiations, which continued to impact investor sentiment. The yellow metal hovered around $4,450 per ounce after two consecutive sessions of decline, with unresolved key issues between Washington and Tehran.
Market analysts highlighted major disagreements between the US and Iran, such as Iran’s insistence on controlling the Strait of Hormuz and maintaining its nuclear program, while US President Donald Trump emphasized a tough stance, refusing to ease sanctions despite Iran’s appeals for financial relief. Rising energy prices globally have heightened inflation concerns, reducing expectations for immediate interest rate cuts by major central banks, contributing to the volatility of precious metals in the short term.
Expectations of prolonged higher interest rates have kept gold prices more than 15% lower than levels observed at the beginning of the conflict. Meanwhile, crude oil prices surged over 3% following reports that Iran’s Revolutionary Guards targeted a US airbase in retaliation to US military actions, escalating worries about supply disruptions and inflation.
