Gold and silver prices traded with mild losses in Tuesday’s session on 6 April, as investors held back from making fresh bets with US President Donald Trump’s deadline for potential attacks on Iran’s power plants and other infrastructure fast approaching.
At the same time, fading hopes of a ceasefire amid renewed threats have reduced the appeal of precious metals for safe-haven buyers.
Tracking developments in the Middle East, Comex gold futures fell by $53 per troy ounce to the day’s low of $4,631, while silver futures declined even more sharply by $3.06 per troy ounce to $69.78.
In the domestic market, gold futures on MCX dropped ₹1,557 per 10 grams to hit the day’s low of ₹1,48,424. Silver futures on MCX also slipped ₹8758 per kilogram, falling below ₹2.25 lakh to touch a low of ₹2,24,621.
Precious metals lose sheen amid rising war risks, fading truce hopes
On Monday, Trump reiterated his warning that the US would destroy Iran’s power plants and bridges if the country does not reopen the Strait of Hormuz by 8 PM ET on Tuesday. He also said during a news conference that he extended the deadline to Tuesday as he “thought it was inappropriate the day after Easter.”
Over the weekend, hopes were reignited for a potential ceasefire after Axios reported that the US, Iran, and regional mediators were discussing a possible 45-day truce as part of a two-phase deal that could eventually lead to a permanent end to the war, citing US, Israeli, and regional sources.
However, Iran reportedly rejected the 45-day ceasefire proposal and reiterated that it is seeking a permanent end to the war. Tehran also warned of potential retaliation against infrastructure belonging to US allies in the Gulf.
The West Asia conflict, now in its sixth week, has not only rattled risk assets but also weighed on precious metals, amid fears that central banks may tighten monetary policies in response to rising price pressures driven by a surge in crude and gas prices.
Trump warns Iran’s ‘whole civilization will die tonight’
Ahead of the deadline, Trump warned that a “whole civilization will die tonight,” but added that Iran still has time to comply before the 8 PM Washington deadline.
“A whole civilization will die tonight, never to be brought back again. I don’t want that to happen, but it probably will,” Trump wrote on Truth Social. “We will find out tonight—one of the most important moments in the long and complex history of the world.”
Last week, Trump said US forces would continue to strike Iran “very hard” over the next two to three weeks and warned of pushing the country “back to the Stone Age.”
He has repeatedly issued warnings of attacks on Iran’s infrastructure and has also threatened to seize Kharg Island to impact Tehran’s economy. The US has already struck Iran’s nuclear facilities multiple times, while Iran continues to maintain its grip on the Strait of Hormuz.
Latest media reports indicate that the US carried out major overnight attacks on Iran’s Kharg Island. The island had also been targeted earlier with missile strikes.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
