Gold and silver prices fell sharply on Thursday, April 2, after crude oil prices surged nearly 7% following U.S. President Donald Trump’s first national address since the Iran war began, in which he said the United States would continue to strike Iran “very hard” over the coming weeks.
His remarks signalled that geopolitical tensions in the Middle East were likely to stay elevated for longer, triggering sharp moves across commodities and broader financial markets.
On the Multi Commodity Exchange (MCX), gold prices fell 4.3%, or ₹6,608, to ₹1,47,100 per 10 grams, while silver prices on MCX dropped 7.8%, or ₹19,001, to ₹2,24,500 per kg.
Meanwhile, in the international market, gold declined 3.4% to $4,648.20 per ounce, slipping below the $4,700 mark, while silver lost 6.2% to $71.39 per ounce.
The decline in precious metals came as oil prices jumped sharply after Trump’s comments reignited concerns over prolonged disruption to global energy supplies. Brent crude futures rose $7.65, or 7.6%, to $108.81 per barrel at 0902 GMT, while U.S. West Texas Intermediate (WTI) crude futures gained $7.06, or 7.1%, to $107.18 per barrel.
At the same time, the 10-year U.S. Treasury yield and the dollar index also moved higher. A stronger dollar and rising bond yields tend to pressure dollar-denominated metals, as they make such assets less attractive to investors.
What Trump said in his address?
Any hopes of a swift resolution to the Middle East conflict faded after Trump signalled a more aggressive military approach toward Iran. His comments sent oil prices back well above $100 per barrel, raising fresh concerns over inflation and supply disruptions.
“We’re going to hit them extremely hard over the next two to three weeks. We’re going to bring them back to the Stone Ages where they belong,” Trump said in a Wednesday evening prime-time speech.
He also said the United States would soon achieve its military objectives, but suggested that the conflict could intensify further if Iranian leaders did not agree to Washington’s demands during negotiations. He indicated that Iran’s energy and oil infrastructure could become targets in future strikes.
Trump further said in the same speech that the United States would “finish the job” in Iran soon, as “core strategic objectives are nearing completion”, and indicated that military operations could conclude in the near future.
However, he did not address the deadline he had earlier set for Iran to reopen the Strait of Hormuz, the key waterway for global oil and gas shipments. Trump had previously warned of attacks on Iran’s energy infrastructure if the strait remained closed, but in his latest speech, he did not provide any clear roadmap for easing the supply disruptions that have driven energy prices sharply higher.
Iran’s armed forces responded by warning the United States and Israel of “more crushing, broader and more destructive” attacks in the coming period.
Apart from geopolitical tensions, expectations around U.S. monetary policy also remained unfavourable for precious metals. Investors continued to see limited chances of a Federal Reserve rate cut through most of 2026, with only a modest 25% probability of a rate cut being priced in for the December policy meeting.
That combination — elevated oil prices, a stronger dollar, rising Treasury yields and reduced hopes of near-term rate cuts — kept pressure firmly on gold and silver prices despite the geopolitical uncertainty.
Should you buy?
Despite the sharp decline, experts believe the recent fall in gold and silver may not necessarily signal a complete reversal in trend, but rather a bout of profit-booking after a strong rally. The key question for investors now is whether this correction offers a buying opportunity or if precious metals could remain under pressure in the near term.
Renisha Chainani, Head – Research at Augmont, said the sharp fall in gold and silver prices appears to be driven by profit-booking after both precious metals recently touched fresh two-week highs, even as the broader geopolitical backdrop remains tense.
She said gold and silver witnessed significant profit-booking after reaching fresh two-week highs near $4,800 and $75, respectively, amid renewed escalation in the US-Iran conflict. According to her, the prolonged nature of the war, along with Donald Trump’s hawkish remarks, has lowered expectations of any near-term de-escalation. This, she said, has further strengthened the U.S. dollar’s dominance as a global reserve currency, putting pressure on precious metals.
On the outlook, Chainani said gold has approached a key resistance zone near $4,800, which increases the possibility of profit-booking and a correction towards $4,500, or around ₹1,44,000. She added that silver has also tested a critical resistance level near $75, suggesting a possible downside move towards $67, or approximately ₹2,15,000.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
