Precious metals continued to drift lower during Tuesday’s session, as recent optimism over signs of de-escalation in the Middle East quickly faded. Tensions in the region remained stubbornly high on 24 March, fuelling fears that a prolonged conflict could stoke inflation and potentially lead to higher interest rates.
May silver futures on COMEX weakened further, tumbling $3.24 to an intraday low of $66.15 per troy ounce, while April gold futures plunged $101 to hit an intraday low of $4,306 per troy ounce.
Gold and silver prices witnessed wild swings in the previous session following statements from both US President Donald Trump and Iranian officials regarding a potential end to the war, with both metals eventually closing in the red after a sharp intraday recovery.
The optimism at the start of the week came after President Trump raised hopes that the war could end soon, stating that the United States and Iran had held productive talks “regarding a complete and total resolution of our hostilities in the Middle East.” His statement on social media caused stocks to flip immediately from losses to gains.
This eased concerns that the war could cause long-term disruption to the oil and natural gas industry in the Persian Gulf, one significant enough to trigger a surge in global inflation.
However, Iran has denied that such talks are underway, and attacks continued on Tuesday. Tehran remains highly suspicious of the United States, which, under the Trump administration, has twice launched attacks during high-level diplomatic engagements, including the 28 February strikes that triggered the current conflict.
The exchange of missiles in West Asia has now entered its 25th day, with a gas pressure-regulation station and an associated administrative building reportedly targeted in Iran’s central Isfahan province in recent US–Israeli strikes, according to the semi-official Fars news agency.
Israeli Prime Minister Benjamin Netanyahu also said Israel will continue to strike Iran and Lebanon even as the US considers a ceasefire. Iran, in turn, launched a new wave of missiles at Israel.
Higher oil prices have reduced the likelihood of US Federal Reserve rate cuts this year, with traders fearing that if energy prices remain elevated in the coming months, the central bank may even consider rate hikes to contain inflationary pressures.
These concerns have already fed into bond markets, with US Treasury yields rising, making non-yielding bullion less attractive to investors.
MCX gold drops nearly ₹3,000/10g; silver nears ₹2.10 lakh
In the domestic market, the April gold futures contract on MCX dropped ₹2,968 per 10 grams to hit an intraday low of ₹1,36,292. In the previous session, the yellow metal had slipped to its lowest level since early December 2025.
The May silver contract, too, tumbled ₹11,605 per kilogram to ₹2,13,562. In Monday’s session, the white metal had₹2 lakh mark”> slipped below the ₹2 lakh mark for the first time in three months.
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