Gold, Silver Prices Slip As Geopolitical Tensions And Fed Signals Weigh

On Tuesday, gold and silver prices edged lower, reflecting a cautious market mood driven by geopolitical uncertainty and upcoming economic developments.

On the Multi Commodity Exchange, gold futures for early June delivery declined modestly, trading near Rs 1.53 lakh per 10 grams after slipping during the morning session. Silver contracts also moved lower, with prices dropping close to 1 per cent, mirroring the subdued trend seen in gold.

In global markets, weakness persisted. Prices on COMEX showed gold easing slightly below recent highs, while silver registered a sharper fall, indicating reduced safe-haven demand in the near term.

Market participants attributed the decline to uncertainty surrounding the fragile US-Iran ceasefire and ambiguity over the next round of negotiations.

Conflicting signals from both sides have kept investors on edge, limiting fresh positions in bullion.

Recent developments, including the interception of an Iranian vessel by US forces, have added to geopolitical tensions, even as diplomatic channels remain under consideration.

US President Donald Trump has indicated that a delegation led by JD Vance may engage in talks, though Tehran’s stance remains guarded.

Apart from geopolitical factors, attention has also turned to US monetary policy signals.

The Senate confirmation hearing of Federal Reserve Chair nominee Kevin Warsh is being closely tracked, with his previously hawkish views seen as a potential headwind for non-yielding assets like gold.

Analysts noted that this combination of geopolitical risk and policy uncertainty is keeping bullion prices under pressure in the short term.

Energy markets followed a similar trajectory. Brent Crude declined by over 1 per cent to below $94 per barrel, while WTI Crude dropped around 2 per cent, reflecting easing supply concerns and shifting sentiment.

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