Gold on the COMEX was last quoted at $4,738.80 an ounce, down $38.40 or 0.8%, while silver fell $1.925, or 2.55%, to $73.46 an ounce.
Analysts said the declines follow a broader pattern of market caution despite a temporary easing of tensions after the US and Iran agreed to a conditional two-week ceasefire. The agreement requires Iran to reopen the Strait of Hormuz to commercial shipping, while both sides suspend certain military actions.
Kaynat Chainwala, AVP Commodity Research at Kotak Securities, noted that bullion had earlier surged in global markets on ceasefire news, with COMEX gold and silver rising 3% and 7% respectively.
“The conditional ceasefire and ongoing uncertainty around Strait of Hormuz compliance mean precious metals remain sensitive to geopolitical developments,” she said.
Oil markets also reflected heightened volatility.
US crude futures rose 2.8% to $96.99 a barrel, while Brent crude gained 2.1% to $96.74, as market participants continued to weigh supply risks from the Gulf region.
Kaynat Chainwala highlighted that prompt WTI spreads remained elevated at around $10 per barrel, signalling ongoing uncertainty despite the ceasefire.
At this time, experts advise caution.
Aksha Kamboj, Vice President at the India Bullion & Jewellers Association, suggested that while global developments support gold and silver, periodic volatility remains likely. She recommended staggered buying to manage risk, particularly for silver, which tends to experience sharper price swings due to its dual role as an industrial commodity and an investment asset.
Swapnil Aggarwal, Director at VSRK Capital, added that the Reserve Bank of India’s steady policy stance supports the outlook for gold.
“Steady interest rates, coupled with global uncertainty, strengthen demand for gold as a safe-haven asset. However, a stronger dollar and shifting expectations for global rates may moderate gains,” Aggarwal said.
–With agencies inputs
