Gold and Silver Prices Remain Volatile as US-Iran Tensions Escalate

Gold and Silver Prices Decline Amid Escalating Tensions in Middle East

Gold and silver prices in India declined on Friday, mirroring weakness in global bullion markets, which are on track for a weekly loss amid escalating tensions from the US-Iran conflict in the Middle East. The MCX gold for June futures slipped ₹26, or 0.02%, to ₹1,51,735 per 10 grams, with prices down over 2% so far this week. Meanwhile, MCX silver for May futures dropped ₹1,928, or 0.80%, to ₹2,39,585 per kg, extending its weekly losses to more than 6%.

On the international front, spot gold gained 0.6% to $4,721.15 per ounce on Friday, after climbing over 1% earlier in the session, though it remains down more than 2% for the week so far. Meanwhile, spot silver advanced 1.4% to $76.49 per ounce, but is still lower by 3.37% on a weekly basis.

Since the onset of the US-Iran conflict, gold prices have declined by more than 10%, while silver has fallen even more sharply, dropping around 18%. The US-Iran conflict has bolstered the dollar and heightened concerns about rising inflation, dampening demand for gold.

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The situation has reached a stalemate, with the critical Strait of Hormuz remaining closed, even as military activity from the involved nations has eased. This has left investors uncertain, often reacting to statements from Donald Trump, which have alternated between raising hopes for a resolution and signaling the possibility of renewed attacks.

Meanwhile, Iran's Foreign Minister Abbas Araqchi was expected to visit Islamabad on Friday to explore options for reviving peace negotiations with the United States, though no direct meeting with US officials was planned, according to a Reuters report. In a separate development, Israel and Lebanon agreed to extend their ceasefire by three weeks.

Gold and silver are under near-term pressure primarily because elevated crude oil, sustained by Strait of Hormuz disruptions and the US-Iran ceasefire uncertainty, is reinforcing the case for prolonged higher interest rates, according to Kaynat Chainwala, AVP - Commodity Research, Kotak Securities. However, Chainwala noted that in the long run, once the rates narrative shifts or geopolitical risk begins weighing more clearly on growth, gold has strong structural support to reassert itself.

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Silver presents a more nuanced outlook, with Chainwala stating that while near-term volatility may persist due to liquidity pressures and shifting Fed expectations, the medium-term outlook remains supported by geopolitical uncertainty, stagflation risks, and ongoing structural shifts in global reserve allocation.

On the MCX gold prices outlook, Ponmudi R, CEO of Enrich Money, said that the bullion is trading near the ₹1,52,000–₹1,53,200 zone, indicating consolidation after the recent recovery, with near-term momentum moderating while the broader structure remains constructive.

On the downside, ₹1,50,300–₹1,50,000 acts as immediate support for MCX gold, while a break below could extend weakness toward ₹1,48,000–₹1,45,000. On the upside, resistance is seen at ₹1,55,500–₹1,57,000, followed by ₹1,58,000–₹1,60,000; a sustained breakout is needed to revive bullish momentum.

On the MCX silver prices, Ponmudi R opined that MCX Silver futures witnessed a weak-to-consolidation week, with prices currently hovering around ₹2,44,000–₹2,45,000 after a pullback. The ₹2,40,000–₹2,38,000 zone is acting as a crucial support, and holding above it may keep the market stable; however, a break below this level could drag prices toward ₹2,32,000–₹2,30,000.