Precious metals prices dropped sharply amid renewed US-Iran tensions, reflecting market caution despite ongoing geopolitical uncertainties and volume of market reactions.
Gold and silver futures fell sharply on Friday as renewed tensions between the United States and Iran pushed investors towards caution and added to pressure on precious metals. On the Multi Commodity Exchange, October gold contracts slipped to an intraday low of ₹1,52,233 by 10.22 am, while September silver contracts fell to ₹2,32,454, according to market data.
Gold later recovered part of the loss but remained weaker at ₹1,52,415, down ₹1,051, or 0.68%. Silver was quoted at ₹2,32,880, lower by ₹2,567, or about 1%. Both metals had opened lower on the exchange, reflecting a session marked by brisk selling and weaker bullish momentum.
The pullback comes after months of volatile trading driven by Middle East risks. A March report by Lion Global Investors said conflict in the region, including threats to energy infrastructure and the Strait of Hormuz, had lifted crude and natural gas prices while leaving gold vulnerable to swings in the US dollar and Treasury yields. UBS also said in February that gold had gained support from heightened US-Iran tension, underscoring the metal’s role as a safe haven when geopolitical risk rises.
Still, market reaction has not always matched the scale of the headlines. Amova Asset Management said in a March analysis that investors had shown surprisingly little strain in equities and bonds even as Iran-related tensions escalated, suggesting markets were pricing in a limited conflict. That cautious reading helps explain why Friday’s decline in gold and silver was steep but orderly rather than panicked, even as traders weighed the risk of further pressure in the near term.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
