Gold and Silver Prices Drop Up to 5.6% as Middle East Signals Disappoint Markets
Precious Metals See Sharp Decline Amid Geopolitical Uncertainty
Mumbai, April 2: Gold and silver prices witnessed a sharp decline of up to 5.6 per cent on Thursday after remarks by US President Donald Trump on the ongoing Middle East conflict failed to deliver clear signals of an imminent resolution, dampening investor sentiment.The lack of a definitive ceasefire announcement led to profit booking in precious metals, reversing earlier gains.
MCX Gold and Silver Futures Slip Significantly
On the Multi Commodity Exchange (MCX), gold futures for June 5 delivery dropped as much as 2.31 per cent, or Rs 3,563, hitting an intraday low of Rs 1,50,145 around 10:30 am.Despite the early fall, gold showed slight recovery during the session, trading at Rs 1,52,490, down 0.79 per cent or Rs 1,218 at the intraday high.
Silver futures for May 5 delivery recorded a steeper fall, declining up to 5.59 per cent, or Rs 13,613, to touch an intraday low of Rs 2,29,888.
However, the white metal briefly rebounded to Rs 2,42,800, marking a marginal gain of 0.28 per cent compared to the previous session’s close.
Global Gold and Silver Rates Also Under Pressure
In the international market, spot gold prices fell by up to 2.26 per cent to reach an intraday low of $4,650.30.Spot silver declined by 4.7 per cent to $71.50.
COMEX gold traded at $4,813, down 2.73 per cent, while COMEX silver dropped करीब 6 per cent to around $71.
Trump’s Remarks Weigh on Market Sentiment
Precious metals came under pressure after Trump indicated that the month-long conflict in the Middle East could be nearing its end, but stopped short of announcing any concrete resolution.He warned that the United States could strike Iran “extremely hard” within two to three weeks if necessary, adding uncertainty to the geopolitical outlook.
Trump also stated that the military mission was close to achieving its objectives and called on allies reliant on Middle Eastern oil to address the near-shutdown of the Strait of Hormuz.
Rising Oil Prices Add to Market Volatility
Meanwhile, crude oil prices moved higher, reflecting ongoing supply concerns.Brent crude futures surged as much as 5.24 per cent to $106.47 per barrel, while US West Texas Intermediate (WTI) futures climbed 4.5 per cent to $104.64.
Outlook Remains Cautious for Precious Metals
Analysts indicated that the price structure for both gold and silver remains weak in the near term, with geopolitical tensions offering only limited support.Macroeconomic uncertainty and ongoing developments in the Middle East are expected to continue influencing price movements in the coming sessions.
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