Comex Gold Prices Decline $53 per Ounce, Silver Falls $3.7 per Ounce Amid Oil Price Rebound and Inflation Concerns

Global Markets Tumble as Inflation Fears Return Amid Middle East Tensions

The global gold and silver markets experienced a decline on Thursday, 23 April, as a surge in crude oil prices reignited inflation fears and a strengthening US dollar made precious metals less attractive to investors. The price of gold, traded on the COMEX, dropped $53 per troy ounce to an intraday low of $4,700, while silver futures fell $3.70 to $74.23.

The week began with a sense of optimism in the Middle East, but this sentiment was short-lived as tensions escalated, leading to a two-week low in both gold and silver prices. The price of gold fell below $4,700, and silver prices dropped to $74.23. The renewed tensions in the region were fueled by a lack of progress in diplomatic efforts between the US and Iran.

The price of crude oil extended its gains for a fourth consecutive session, amid limited progress in diplomatic efforts between the US and Iran. This surge in oil prices has reignited inflation fears, which have been a major concern for investors in recent weeks. The US intercepted at least three Iranian oil tankers in Asian waters, raising concerns over potential supply disruptions.

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Iran has continued to assert control over the Strait of Hormuz, restricting nearly all international traffic and reportedly firing on commercial vessels this week. The country has also reportedly seized two ships in the strategic waterway after US President Donald Trump announced he was indefinitely calling off attacks, with no signs of peace talks resuming.

The US dollar inched higher, making dollar-denominated bullion more expensive for holders of other currencies. Meanwhile, benchmark 10-year US Treasury yields rose to a more than one-week high, increasing the opportunity cost of holding non-yielding assets like gold. A Reuters poll of economists indicated that the US Federal Reserve is likely to wait at least six months before cutting interest rates this year, as war-driven energy shocks continue to stoke already elevated inflation.

The domestic market also experienced a decline, with the near-month gold futures contract on MCX slipping ₹1,206 per 10 grams to hit the day's low of ₹1,51,451, marking its lowest level since 13 April. The silver futures contract fell even more sharply, declining by ₹8,764 per kilogram to ₹2,39,600. Silver was last seen around this level about two weeks ago.

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