Mumbai, April 2: Precious metal prices experienced a significant decline on Thursday following statements made by U.S. President Donald Trump regarding West Asia. Investors in bullion, who were hopeful for a ceasefire, faced a major setback as gold and silver prices dropped by up to 7 percent during the trading day.
On the Multi Commodity Exchange (MCX), gold futures for June fell by more than 3.60 percent, reaching an intraday low of ₹147,100 per 10 grams. However, by the time this report was written (around 11:52 AM), gold was trading at ₹148,049, reflecting a decrease of 3.68 percent or ₹5,659.
Silver futures for May saw an even steeper decline, plummeting over 7 percent to an intraday low of ₹224,500 per kilogram. As of the latest update, silver was trading at ₹226,221, down 7.10 percent or ₹17,280.
International markets also reflected weakness in gold and silver prices. Spot gold fell by 2.26 percent to $4,650.30, while spot silver dropped 4.7 percent to $71.50.
On COMEX, gold was trading at $4,813, down 2.73 percent, while silver fell nearly 6 percent to $71.
Analysts suggest that the trend for both precious metals remains weak. Despite tensions in West Asia, demand for these metals as safe-haven investments is receiving limited support.
Experts indicate that market sentiment is likely to remain cautious in the near future, as macroeconomic uncertainties and geopolitical developments continue to influence prices.
Recently, Trump stated that the ongoing conflict with Iran is nearing an end, but he also warned of a potential “very tough” attack on Iran within the next two to three weeks. He mentioned that military operations are close to achieving their objectives and called for cooperation from oil-dependent countries in the Middle East to manage the crisis in the Strait of Hormuz.
Meanwhile, crude oil prices continued to rise, with Brent crude increasing by 5.24 percent to $106.47 per barrel, and U.S. WTI crude climbing 4.5 percent to $104.64 per barrel.
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