Gold Falls ₹600, Silver Drops ₹2,000 As Trump’s Iran Deadline Triggers Volatility In Bullion Markets

New Delhi, April 7: Silver prices declined by Rs 2,000 to Rs 2.40 lakh per kilogram, while gold slipped to Rs 1.53 lakh per 10 grams in the national capital on Tuesday as investors turned cautious ahead of US President Donald Trump's deadline to Iran for reopening the Strait of Hormuz.

Silver and gold prices decline in domestic market

According to the All India Sarafa Association, the white metal depreciated by Rs 2,000, or nearly 1 per cent, to Rs 2,40,000 per kilogram (inclusive of all taxes) from Monday's closing level of Rs 2,42,000 per kg.

In the bullion market, gold of 99.9 per cent purity also slipped by Rs 600, or 0.4 per cent, to Rs 1,53,200 per 10 grams (inclusive of all taxes). It settled at Rs 1,53,800 per 10 grams in the previous market session.

Trump’s ultimatum adds pressure on bullion

Gold prices came under pressure after Trump issued a new ultimatum to Iran and warned of fresh military strikes on power plants and other civilian infrastructure if the Strait of Hormuz is not reopened, setting a deadline for Tuesday, Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities, said.

Tehran rejected the ultimatum and continued its attacks on energy assets across the Middle East.

Global trends reflect cautious sentiment

Globally, spot gold edged higher at USD 4,659.16 per ounce, while silver slipped nearly 1 per cent to USD 72.14 per ounce, reflecting cautious sentiment in overseas trade.

Meanwhile, geopolitical tensions have intensified after President Trump warned in a Truth Social post that "a whole civilization will die tonight" if Iran does not make a deal, triggering concerns of potential military escalation.

Crude oil prices rise amid geopolitical tensions

The remarks lifted crude oil prices, with West Texas Intermediate rising 3.08 per cent to USD 115.87 per barrel, and Brent crude gaining 1 per cent to USD 110.80 per barrel in New York.

Also Watch:

According to analysts, bullion markets are expected to remain volatile as investors track developments in West Asia, movements in crude oil prices and upcoming US macroeconomic data for fresh cues.

(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)