Gold and silver prices slipped on Thursday, retreating after two straight sessions of gains, as investors held back, awaiting clearer signals on efforts to de-escalate tensions in the Middle East. Oil also gained, which again put rate cut hopes in the coming US Fed meetings in limbo.
Spot gold declined 2.5% to $4,440, while gold futures for April delivery dropped 2.1% to $4,457. In other precious metals, spot silver fell 4.5% to $69.30 per ounce.
U.S. President Donald Trump said Iran was eager to strike a deal to end nearly four weeks of conflict. His remarks stood in contrast to Iran’s foreign minister, who said Tehran was reviewing a U.S. proposal but was not looking to engage in talks to end the fighting.
Given the volatility and sharp swings in developments, precious metals are likely to remain volatile, experts suggest. More significant moves could emerge early next week as investors keep an eye on possible escalation or a larger military conflict.
Trump has also warned of tougher action if Iran does not accept that it has been “defeated militarily”, according to White House press secretary Karoline Leavitt. Meanwhile, Brent crude futures moved back above $100 per barrel amid concerns that prolonged conflict in the region could further disrupt energy supplies.
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Since the start of the U.S.-Israeli conflict with Iran, Tehran has targeted countries hosting U.S. military bases and effectively shut the Strait of Hormuz, a key route that handles about one-fifth of global oil and liquefied natural gas flows.
Rising crude prices tend to stoke inflation by increasing transportation and manufacturing costs. While inflation typically supports gold as a hedge, elevated interest rates reduce its appeal as a non-yielding asset.Market expectations have also shifted sharply. According to CME Group’s FedWatch Tool, traders now see almost no chance of a Federal Reserve rate cut this year, compared with expectations of at least two cuts before the conflict began.
Gold, which had surged past $5,500 an ounce earlier in 2026 amid geopolitical tensions and macroeconomic concerns, has now retreated to around $4,550. Silver has followed a similar trajectory, falling significantly from its recent highs.
Gold, long regarded as a reliable refuge in times of crisis, has come under unexpected pressure in 2026. Despite escalating geopolitical tensions in the Middle East, the precious metal has witnessed a sharp decline, wiping out much of its gains after scaling record highs earlier this year. According to AFP, a mix of liquidity needs, shifting monetary expectations, and logistical disruptions has driven the downturn.
On the upside, the $4,670 to $4,750 range remains an important resistance band. A sustained move above $4,750 could extend prices towards $4,850, where stronger supply pressure may emerge. On the downside, a break below $4,500 may accelerate weakness towards the $4,360 to $4,400 level. Overall, the structure remains cautiously positive as long as prices continue to trade above key support levels.
A sustained and decisive move above $80 would signal strengthening bullish momentum and may open the door for an advance towards $85 to $88, where selling pressure is likely to emerge. However, a failure to hold above $73 could reintroduce downward pressure, potentially dragging prices towards $70 in the near term, with stronger support placed in the $66 to $68 region.
On account of Ram Navami, trading on the MCX will resume in the evening session between 5 pm and 11:30 pm.
MCX’s yearly calendar announces 16 trading holidays in 2026, during which the exchange will observe partial or full closures. The next holiday this month will be on March 31, 2026, for Shri Mahavir Jayanti. However, the market will be closed in the morning session only and will resume trading in the evening session.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)