Gold Slips Over Week As US-Iran Talks Stall; Silver Edges Higher

Gold prices recorded a weekly decline of 0.81 per cent as uncertainty around negotiations between the United States and Iran reduced expectations of an early interest rate cut.

On Friday, domestic futures showed limited movement. Gold contracts for June on the MCX rose marginally by 0.01 per cent, while silver futures for May increased by 0.49 per cent. Gold futures were trading at Rs 1,51,363, whereas silver stood at Rs 2,47,500 per kilogram.

According to data from the India Bullion and Jewellers Association, the price of 24-carat gold (10 grams) declined to Rs 1,50,263 on Thursday from Rs 1,51,495 at the start of the week.

In global markets, bullion prices weakened, falling up to 1.2 per cent on Friday after a gain in the previous session. Higher energy prices and rising US Treasury yields drove the decline.

Traders noted that gold has dropped by nearly 14 per cent since the US-Iran conflict began on February 28, 2026.

Reports indicated that Iran has insisted the US blockade must be lifted before reopening the Strait of Hormuz. At the same time, Tehran is said to have shared a fresh proposal through Pakistani intermediaries, though both sides appear to be waiting for further movement from the other.

Market analysts said that while diplomatic engagement continues, the absence of a clear breakthrough has kept geopolitical uncertainty reflected in prices.

Inflation Data and Rate Outlook

Recent US data showed the PCE inflation index at 3.5 per cent in March, marking a near three-year high. This has strengthened expectations that interest rates may remain elevated for a longer period, which typically weighs on non-yielding assets such as gold.

Crude oil prices remained volatile during the week but stayed relatively firm due to concerns about supply disruptions. This has added another layer of pressure on precious metals.

Analysts observed that gold and silver are currently undergoing a phase of consolidation following their recent rally driven by safe-haven demand. Investors booked profits at higher levels, while buying interest emerged near support levels.

In international trading, COMEX gold hovered in the $4,620 to $4,650 range, with resistance seen between $4,700 and $4,760. Silver traded above $76, with the broader trend remaining positive, though near-term movement is likely to stay cautious.

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