Gold, Silver Prices Crash Today Live Updates: Gold sees worst rate drop in over 40 years; silver prices plunge Rs 14,000 per kg

Gold prices fell sharply as rising inflation concerns and expectations of higher interest rates continued to weigh on bullion, even as the US-Israel conflict with Iran showed no signs of easing. Over the weekend, tensions escalated after President Trump issued a 48-hour deadline for Iran to reopen the Strait of Hormuz, warning of severe retaliation targeting critical energy infrastructure, while Tehran responded with threats to attack key regional assets and potentially shut the strait entirely. The conflict has now entered its fourth consecutive week, with continued hostilities raising fears of prolonged disruptions in global energy supply.

These developments have significantly increased concerns over energy-driven inflation, which has been a major factor dragging gold lower in recent weeks. Markets now expect that sustained high oil prices could force central banks to adopt a more hawkish stance, limiting the appeal of non-yielding assets like gold.

The shift in rate expectations has been notable, with markets moving from pricing in multiple rate cuts earlier to now factoring in a pause and even a small probability of a rate hike in upcoming Federal Reserve meetings.

This follows the Fed’s recent decision to hold rates steady while highlighting inflation risks, alongside similar hawkish signals from the ECB and BOE, whille the RBA has already hiked rates. Overall, the transition from rate cuts to potential hikes amid persistent inflation fears has significantly pressured gold prices despite ongoing geopolitical uncertainty, says Manav Modi Commodities Analyst Motilal Oswal Financial services Ltd.