The trend reflects a cautious market mood as investors tracked Federal Reserve policy signals, geopolitical developments and shifting inflation expectations driven by energy prices.
Where prices stand
On COMEX, gold edged lower by 0.19% to $4,685 per ounce, compared with its previous close of $4,697.50 an ounce.
Silver declined more sharply by 0.77% to $74.445 per ounce, down from $75.460 an ounce.
What’s driving gold and silver
Market sentiment is being shaped by a combination of geopolitical and macroeconomic factors.
Investors are awaiting comments from US Federal Reserve Chair Jerome Powell, after expectations that the Fed will hold rates steady. Markets are also tracking upcoming policy decisions from the European Central Bank, Bank of England and Bank of Canada.
Geopolitical tensions around Iran continue to provide baseline support, though their impact has moderated amid stalled diplomatic progress and discussions around the Strait of Hormuz. This has kept defensive flows in check rather than triggering a stronger rally.
At the same time, oil prices—up nearly 3% in the previous session—are reinforcing inflation concerns. Elevated energy costs are supporting expectations of prolonged policy caution from global central banks, limiting upside for gold.
Experts’ perspective
According to Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions, President of India Bullion and Jewellers Association and Chairman at Jain International Trade Organisation, easing geopolitical tensions around the US–Iran conflict has reduced immediate safe-haven demand for gold.
He added that elevated energy prices are keeping inflation concerns elevated, which in turn supports expectations of tighter monetary conditions and weighs on gold in the near term.
According to Sachin Sawrikar, Managing Partner at Artha Bharat Investment Managers IFSC LLP, the recent move in precious metals reflects a rotation of inflation-hedge flows toward crude oil rather than a loss of gold’s appeal. He noted that higher energy prices have led investors to reassess inflation expectations and delay rate-cut bets, contributing to gold’s consolidation after its strong rally.
Sawrikar added that silver’s sharper decline reflects its higher sensitivity to industrial demand, making it more vulnerable in a growth-slowing environment linked to sustained high energy prices. He said the long-term structural outlook for gold remains intact, supported by central bank buying and ongoing uncertainty around global real interest rates.
–With Reuters inputs
