COMEX gold fell 0.96% to $4,449.40 per ounce. COMEX silver dropped 1.24% to $68.93 per ounce, with prices moving between $69.54 and $67.70 an ounce during the session.
The decline comes amid escalating tensions in the West Asia, which have pushed oil prices sharply higher and raised concerns about a broader inflation shock. While geopolitical risks typically support safe-haven assets like gold, analysts said macroeconomic factors are currently dominating price movements.
Manav Modi, commodities analyst at Motilal Oswal Financial Services, said gold faced pressure from a strengthening dollar and mixed signals around potential US-Iran negotiations.
He added that rising expectations of higher interest rates, driven by energy-led inflation risks, have also weighed on gold by increasing the opportunity cost of holding non-yielding assets.
Ross Maxwell, Global Strategy Operations Lead at VT Markets, said both gold and silver are being impacted by a shift in rate expectations and higher bond yields. According to him, inflation concerns linked to surging energy prices have led markets to price in tighter monetary policy, reducing the appeal of precious metals.
He also noted that a stronger US dollar—supported by safe-haven flows and the country’s position as a net energy exporter—has made dollar-denominated commodities more expensive for global buyers, further pressuring prices.
In addition, profit booking after recent rallies and concerns about global economic growth have added to the downside, particularly for silver, which has significant industrial demand exposure.
Analysts said investors will closely track signals from central banks, especially the Federal Reserve, along with movements in bond yields, the dollar, and energy prices for further direction in bullion markets.
–With agencies inputs
