Silver prices dropped by ₹2,000 to ₹2.40 lakh per kilogram, while gold declined by ₹600 in the national capital on Tuesday, as investors adopted a cautious stance ahead of Donald Trump’s deadline to Iran regarding the reopening of the Strait of Hormuz.
Silver fell by ₹2,000, or nearly 1 per cent, to ₹2,40,000 per kg (inclusive of all taxes), down from the previous session’s closing level of ₹2,42,000 per kg.
In the bullion segment, gold of 99.9 per cent purity also weakened by ₹600, or 0.4 per cent, to ₹1,53,200 per 10 grams (inclusive of all taxes), compared to ₹1,53,800 per 10 grams in the prior trading session.
According to Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, gold prices came under pressure after Trump issued a fresh ultimatum to Iran, warning of possible military strikes on power plants and other civilian infrastructure if the Strait of Hormuz is not reopened by Tuesday.
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Tehran rejected the ultimatum and continued targeting energy assets across the Middle East, further heightening tensions. In global markets, spot gold showed a marginal uptick to USD 4,659.16 per ounce, while silver declined around 1 per cent to USD 72.14 per ounce, indicating cautious sentiment in overseas trading.
Geopolitical risks intensified further after Trump, in a post on Truth Social, warned that ‘a whole civilisation will die tonight’ if Iran fails to reach an agreement, raising fears of a potential military escalation.
These developments pushed crude oil prices higher, with West Texas Intermediate rising 3.08 per cent to USD 115.87 per barrel, and Brent Crude Oil gaining 1 per cent to USD 110.80 per barrel in New York.
Analysts expect bullion markets to remain volatile in the near term as investors closely monitor developments in West Asia, fluctuations in crude oil prices and upcoming US macroeconomic data for further direction.
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