Gold, silver rates today: Gold and silver rates today plunged up to 3% after posting gains over the past two sessions, as investors assessed the chances of a diplomatic resolution to the US-Iran war.
COMEX gold rate today fell over 1% to trade above $4,700 per ounce after gaining 1.5% over the previous two sessions. Meanwhile, COMEX silver prices tumbled 3% to $73 per ounce during the Asian trading hours on Thursday.
What’s driving gold and silver prices today?
The White House announced that the US plans to engage in direct talks with Iran, even as Tehran accused Israel of breaching a recently established ceasefire in Lebanon and continued its attacks on Gulf nations. Despite Iran’s promises to ensure safe transit, the Strait of Hormuz remained largely obstructed.
Oil prices bounced back following their steepest single-day decline since April 2020, while equities moved higher and the dollar weakened on Wednesday—factors that lent support to gold, which is priced in the US currency.
Since the conflict began nearly six weeks ago, bullion has generally moved in line with equities, as its safe-haven appeal has been muted by investors needing liquidity to offset losses elsewhere, according to Bloomberg.
Now entering its second month, the US-Iran war has pushed up energy prices and heightened inflation concerns, increasing the likelihood that central banks may delay rate cuts or even consider raising rates. This poses a challenge for gold, which typically performs better in a low-interest-rate environment.
On the other hand, a prolonged conflict could dampen economic growth, weaken the labour market, and justify lower interest rates. Minutes from the Federal Open Market Committee’s March 17–18 meeting, released Wednesday, showed policymakers grappling with these sharply contrasting economic outlooks.
Is it the right time to buy gold or silver?
Aksha Kamboj, Vice President, India Bullion & Jewellers Association (IBJA) and Executive Chairperson, Aspect Global Ventures, believes that the geopolitical uncertainties have tended to boost the demand for gold as a hedge.
Kamboj recommended investors to stagger their investments rather than make one large purchase, as periodic volatility is likely to persist.
Meanwhile, for silver, Kamboj added that its price tends to fluctuate more frequently compared to gold, which implies that silver is more volatile.
“Investors are encouraged to employ a step-by-step investment approach, utilizing periods of corrections in silver prices instead of buying when it is at a peak,” he said.
Meanwhile, on the technical outlook of gold prices, Ponmudi R, CEO of Enrich Money, said that COMEX gold is trading below $4,800 range. Despite some consolidation, ongoing geopolitical uncertainty continues to support prices, reinforcing underlying strength in the structure and sustaining the upside bias.
“A sustained move above $4,900 could improve momentum toward the $4,950–$5,000 zone. However, a break below $4,800 may accelerate selling toward $4,750 and potentially $4,700–$4,650. Overall, gold continues to gain traction as a safe-haven asset, with improving strength in its upward momentum,” he said.
On the silver prices outlook, Ponmudi added that the white metal is trading below $74 range, with the tone gradually strengthening. Continued industrial demand is providing support, and price action is showing improving conviction.
“A move above $78 could push prices toward $79–$80.However, a break below $76 may increase pressure toward $74–$73, with deeper support at $71–$70. The overall structure is showing signs of strengthening,” Ponmudi 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.
