Gold Prices Steady Amid US-Iran Tensions; Silver Jumps

Gold and silver prices showed mixed trends, with bullion remaining under pressure amid global uncertainty tied to geopolitical tensions and energy market volatility.

Gold Price Movement

According to the All India Sarafa Association, gold of 99.9% purity declined by ₹2,000, or 1.3%, settling at ₹1,52,800 per 10 grams (inclusive of taxes), compared to the previous close of ₹1,54,800. The drop came in a relatively thin trading session, where market participants remained cautious.

The weakness in gold prices was largely attributed to ongoing uncertainty surrounding talks between the United States and Iran. Investors are closely monitoring how these developments could impact global oil supply and inflation.

Key Market Drivers

Rising crude oil prices have played a significant role in shaping sentiment. Elevated energy costs tend to increase inflationary pressures, strengthening expectations that interest rates may remain higher for longer. This has, in turn, boosted the US dollar and Treasury yields—both of which typically weigh on non-yielding assets like gold.

Concerns around supply disruptions in the Strait of Hormuz have further intensified volatility in oil markets. Although Donald Trump recently announced “Project Freedom”, aimed at ensuring safe passage for vessels, the lack of clarity around the initiative has kept investors cautious, triggering renewed buying in crude.

Adding to the tension, remarks from an Iranian lawmaker criticising US involvement in the region as a violation of a fragile ceasefire have heightened geopolitical risks, keeping markets on edge.

Silver Price Movement

In contrast, silver prices in the domestic market surged by ₹6,800, or 2.8%, to ₹2,49,500 per kg, up from ₹2,42,700 in the previous session, as per data from the All India Sarafa Association.

However, the international trend differed. Spot silver prices declined by 2.55% to $73.43 per ounce, while gold fell by $49.27, or 1.07%, to $4,565.68 per ounce. Globally, gold hovered around the $4,560 mark, reflecting continued pressure from a stronger dollar and rising bond yields.

Outlook

Overall, gold continues to trade cautiously as investors weigh the combined impact of geopolitical tensions, oil price fluctuations, and monetary policy expectations. Until there is greater clarity on US-Iran negotiations and global interest rate direction, precious metals are likely to remain volatile in the near term.