New Delhi, May 28: Gold and silver prices witnessed a significant decline in international markets on Thursday. This drop is attributed to increased global instability following a recent attack by the United States on Iran, coupled with a surge in crude oil prices.
By noon, the spot price of gold in the international market fell by 1.74%, reaching $4,379 per ounce. Meanwhile, June futures for gold on COMEX dropped by 1.62%, settling at $4,376.
Silver experienced an even steeper decline compared to gold. The spot price of silver decreased by 2.22%, landing at $72.92 per ounce. The July 2026 silver contract on COMEX fell by 2.62%, trading at $72.93 per ounce.
The Indian market remains closed due to the Bakrid holiday.
Commodity market experts noted that ongoing uncertainty regarding U.S.-Iran talks has led to investor caution, putting pressure on gold prices.
Tensions between the U.S. and Iran persist, with key disputes revolving around Iran’s control over the Strait of Hormuz and its nuclear program. U.S. President Donald Trump has stated that Washington will not concede to either of Iran’s demands.
Experts suggest that “rising energy prices are amplifying inflation concerns globally, diminishing expectations for interest rate cuts by major central banks in the near future.”
They further indicated that ongoing geopolitical uncertainty, high oil prices, and a strong dollar are likely to keep precious metal prices volatile in the near term.
Expectations of prolonged high interest rates are impacting gold prices, which are currently trading over 15% below levels seen at the onset of conflict.
In the meantime, crude oil prices surged by more than 3% following claims by Iran’s Revolutionary Guards of targeting a U.S. airport in response to military actions, raising concerns over supply disruptions and inflation.
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