Mumbai, April 2: Gold and silver prices tumbled sharply on Thursday after US President Donald Trump’s prime-time address on the Middle East conflict failed to signal an immediate ceasefire, disappointing investors who had expected clarity on the conflict resolution. The decline marks one of the most significant intraday drops in precious metals in recent weeks, reflecting market sensitivity to geopolitical developments.
On the Multi Commodity Exchange (MCX), June gold futures fell as much as 2.31 per cent, losing Rs 3,563 to trade at an intraday low of Rs 1,50,145 by 10:30 am. During the same session, gold also touched an intraday high of Rs 1,52,490, down 0.79 per cent or Rs 1,218 from the previous close. Silver futures for May delivery slumped as much as 5.59 per cent, or Rs 13,613, to hit an intraday low of Rs 2,29,888. The white metal’s intraday high reached Rs 2,42,800, up 0.28 per cent from the previous session.
In international markets, spot gold recorded a decline of up to 2.26 per cent to $4,650.30, while spot silver fell 4.7 per cent to $71.50. COMEX gold traded at $4,813, down 2.73 per cent, and COMEX silver plunged nearly 6 per cent to $71. Analysts said both metals remain under pressure, with geopolitical tensions in the Middle East offering only limited safe-haven support.
“The near-term bias remains cautious, with macro uncertainty and geopolitical developments expected to continue driving momentum,” analysts noted, highlighting ongoing volatility in precious metal markets.
Investors’ expectations were impacted after Trump indicated that the month-long Middle East conflict was nearing its end, but simultaneously warned that the United States could strike Iran “extremely hard” within two to three weeks. He emphasized that the military objectives were almost achieved and urged allied nations dependent on Middle Eastern oil to take steps to address the partial shutdown of the Strait of Hormuz.
Meanwhile, oil prices rose sharply amid the geopolitical tension. Brent crude futures climbed as much as 5.24 per cent to $106.47 per barrel, while US WTI futures increased 4.5 per cent to $104.64 per barrel, reflecting heightened concerns over supply disruptions in the region.
Market analysts said that while precious metals initially gained from safe-haven demand, the lack of concrete resolution signals from the US administration led to sharp sell-offs. Traders remain cautious, monitoring both oil price movements and political developments for further cues on global commodity trends.
The combined volatility in metals and energy markets underscores the ongoing sensitivity of global markets to geopolitical risk and macroeconomic uncertainty.
