Gold and silver rates today fell up to 2% on Monday, March 30, as the US-Iran war enters its fifth week with no signs of ending.
Spot gold rate today dropped 1.38% to $4,462 per ounce, after ending the previous session up 2.7%. Meanwhile, silver prices were down 2% to $68.3 per ounce during the Asian trading hours.
What’s driving gold and silver prices today?
According to a Bloomberg report, opportunistic buyers are beginning to step in following the gold market’s sharpest selloff in years, though worries persist that a prolonged conflict could prompt central banks to offload their holdings or raise interest rates to curb inflation.
As the war entered its second month, countries such as Pakistan, Egypt, and Saudi Arabia held discussions over the weekend in search of a resolution. However, hostilities continued unabated — parts of Tehran experienced power outages following missile strikes, while the Iran-backed Houthi movement joined the conflict, and additional US troops were deployed to the region. Iran also targeted aluminium smelters in Bahrain and the United Arab Emirates.
Despite a slight uptick last week, gold has declined roughly 15% since the conflict began, moving largely in line with equities and inversely to oil prices. The economic impact of soaring energy costs has heightened concerns that the US Federal Reserve may raise interest rates — a negative factor for non-yielding assets like bullion — while Turkey’s central bank sold and swapped around 60 tonnes of gold worth over $8 billion during the first two weeks of the war, as per the report.
Strong central bank buying has been a key driver of gold’s rally in recent years. However, if more monetary authorities follow Turkey’s lead, it could slow the pace of purchases and challenge the long-held view that central banks are generally reluctant to sell their gold reserves, the report said.
Gold and silver prices outlook
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, believes that gold remained slightly positive, trading above $4425 with highs near $4475, supported by initial optimism around US–Iran talks. However, the sharp rise in crude continues to signal underlying market stress and inflation risks.
“Despite the bounce, sentiment remains cautious as macro triggers still favor higher interest rates. Overall, gold is likely to stay volatile with limited upside unless clarity emerges on inflation and geopolitics,” Trivedi said.
On the gold prices outlook, Ponmudi R, CEO of Enrich Money, said that COMEX Gold is currently trading in the $4,400–$4,500 reference zone after a sharp corrective decline from recent highs above $5,500.
“The price action reflects a strong breakdown followed by early signs of base formation, indicating that selling pressure is gradually getting absorbed. However, prices continue to trade below key short-term moving averages, suggesting lingering weakness in the lower timeframes. The recent bounce from sub-$4,200 levels indicates emerging demand at lower zones, with buyers attempting to regain control after the steep correction.”
Meanwhile, on the silver prices outlook, Ponmudi added that COMEX Silver is trading in the $68–$72 zone following a sharp corrective decline and subsequent stabilisation.
“The price action suggests that selling pressure has eased, with the market attempting to form a base and initiate a recovery structure. However, prices continue to face resistance around key short-term moving averages, indicating that the recovery remains gradual and not yet fully confirmed. The recent bounce highlights buying interest at lower levels,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
