Gold, Silver Prices Fall As US-Iran Tensions Shake Commodity Markets

Gold and silver prices declined in international markets on Thursday as renewed geopolitical tensions, rising crude oil prices, and a stronger US dollar affected investor sentiment following fresh US military action against Iran.

Spot gold fell nearly 2 per cent to $4,368.99 per ounce, while COMEX gold traded 1.80 per cent lower at $4,367.90 per ounce.

Silver prices also remained under pressure, with spot silver declining over 3 per cent to $71.94 per ounce and COMEX silver falling 3.56 per cent to $72.22 per ounce.

Trading on the Multi-Commodity Exchange (MCX) remained closed on Thursday on account of Eid al-Adha.

Commodity market experts said uncertainty surrounding ongoing negotiations between the United States and Iran continued to influence investor sentiment and keep precious metals volatile.

Gold prices remained under pressure after recording losses for two straight sessions, with major disagreements between Washington and Tehran still unresolved.

Reports suggested that Iran wants to retain influence over the Strait of Hormuz and continue its nuclear programme, while US President Donald Trump reiterated that Washington would not accept what he called a weak agreement or offer sanctions relief despite Tehran’s demand for financial support.

Analysts said rising energy prices and geopolitical tensions could continue to impact gold and silver prices in the near term.

Higher interest rate expectations have also weakened bullion demand as investors shift towards interest-bearing assets.

Crude oil prices surged more than 3 per cent after reports claimed Iran’s Revolutionary Guards targeted a US airbase in response to recent US military action, further intensifying concerns over supply disruptions and inflationary pressures in global markets.

Also Read: Global Oil Prices Jump Nearly 4% After Fresh US-Iran Tensions