On the COMEX, gold futures were trading at $3,987.50 an ounce, down 0.12%, while silver futures fell 1.24% to $55.49 an ounce.
Why are gold and silver prices falling today?
The decline comes after investors booked profits following recent gains, while broader financial markets saw a rotation away from technology stocks into other sectors. Silver witnessed steeper losses than gold, reflecting its dual role as both a precious and industrial metal.
At the same time, renewed conflict in the West Asia has limited the downside in gold prices. The United States launched a fresh wave of strikes against Iran, increasing concerns over a wider regional conflict and boosting demand for safe-haven assets.
West Asia tensions keep gold supported
Although bullion prices eased on Friday, geopolitical risks continue to underpin gold.
Oil prices climbed as fears of supply disruptions resurfaced. Brent crude was trading near $84.8 per barrel, putting it on track for its biggest weekly gain in about three months. Higher geopolitical uncertainty typically supports gold as investors seek relatively safer assets during periods of market volatility.
Focus shifts to the US Federal Reserve
Investors are also closely tracking the outlook for US interest rates.
Recent US inflation data has strengthened expectations that the Federal Reserve may adopt a less aggressive policy stance than previously feared. Lower interest rate expectations generally support non-yielding assets such as gold because they reduce the opportunity cost of holding bullion.
However, a steady US dollar and cautious investor sentiment have kept gains in check.
What should investors watch?Going forward, bullion prices are likely to be driven by:
- Developments in the West Asia conflict.
- Movements in crude oil prices.
- Signals from the US Federal Reserve on interest rates.
- The US dollar’s trajectory.
- Global risk sentiment and investor demand for safe-haven assets.
While gold remains supported by geopolitical uncertainty, silver could remain relatively more volatile because its prices are also influenced by industrial demand and broader economic expectations.
-With Reuters inputs
