Gold and silver prices plummet on Trump's Iran warning: Is it a good time to buy?
The move was driven by Trump's comments on potential further attacks on Iran, which boosted the US dollar and oil prices, weighing on precious metals
Mumbai (The Uttam Hindu): Precious metals prices fell sharply on Thursday following US President Donald Trump's statement on West Asia. Gold and silver prices fell by up to 7 percent during the day, dealing a major blow to bullion investors hoping for a ceasefire.
On the Multi Commodity Exchange (MCX), gold futures (June 5) fell by more than 3.60 percent, or nearly ₹6,000, to an intraday low of ₹1,47,100 per 10 grams. However, at the time of writing this news (around 11:52 a.m.), gold was trading at ₹1,48,049, down 3.68 percent, or ₹5,659. Silver futures (May 5) saw a further decline, falling by more than 7 percent, or ₹17,200, to an intraday low of ₹2,24,500 per kg. However, at the time of writing this news, it was trading at ₹2,26,221 per kg, down ₹17,280, or ₹17,280.
Gold and silver prices also remained weak in international markets. Spot gold fell 2.26 percent to $4,650.30, while spot silver fell 4.7 percent to $71.50. Meanwhile, on Comex, gold fell 2.73 percent to trade at $4,813, while silver fell nearly 6 percent to $71. Analysts say the price trend for both precious metals remains weak. Despite tensions in West Asia, demand for these metals as safe-havens is receiving limited support. According to experts, the market will remain cautious in the near future, as macroeconomic uncertainty and geopolitical developments will continue to influence prices.
Let us tell you that recently, Donald Trump, in a statement regarding the Iran war, said that the month-long conflict is nearing its end, but he also warned that the US could launch a 'very harsh' attack on Iran in the next 2 to 3 weeks. He also said that the military operation is getting closer to its goal and appealed to the oil-dependent countries of the Middle East to cooperate in handling the crisis situation in the Strait of Hormuz. Meanwhile, crude oil prices continued to rise. Brent crude rose 5.24 percent to $106.47 per barrel and US WTI crude rose 4.5 percent to reach $104.64 per barrel.