Gold Prices Fall Below Rs 1.51 Lakh as Silver Plummets Over 5% Following Trump's Address
Synopsis
After President Trump's speech on the Middle East conflict, gold and silver prices fell dramatically. Analysts warn of ongoing macroeconomic uncertainties and geopolitical tensions affecting market trends.
Key Takeaways
Gold futures fell by 2.31%, reaching Rs 1,50,145.
Silver futures saw a decline of 5.59%, hitting Rs 2,29,888.
President Trump's address did not provide new resolution indicators.
Geopolitical tensions continue to influence market trends.
Oil prices are also rising due to regional instability.
Mumbai, April 2 (NationPress) On Thursday, the prices of gold and silver experienced a significant decline of up to 5.6 percent following a prime-time address by US President Donald Trump regarding the Middle Eastern conflict. His speech did not provide any new indicators of a potential resolution, leaving bullion enthusiasts disappointed as they anticipated an announcement regarding a ceasefire.
On the Multi Commodity Exchange (MCX), gold futures for June 5 saw a drop of 2.31 percent, translating to a decrease of Rs 3,563, reaching an intraday low of Rs 1,50,145 by 10:30 am. At its peak, the yellow metal was trading 0.79 percent, or Rs 1,218, lower at Rs 1,52,490.
Meanwhile, silver futures for May 5 plunged 5.59 percent, equivalent to Rs 13,613, marking an intraday low of Rs 2,29,888 on the MCX.
The white metal reached an intraday high of Rs 2,42,800, showing an increase of 0.28 percent from the previous day's close.
In the international market, spot gold dipped by 2.26 percent to a low of $4,650.30, while spot silver fell 4.7 percent to $71.50.
Additionally, COMEX gold was priced at $4,813, down by 2.73 percent, and COMEX silver saw a decline of approximately 6 percent to $71.
Analysts highlighted that the price trends for both metals are currently weak, with geopolitical tensions in the Middle East providing only minimal safe-haven support.
"The short-term outlook remains cautious, as macroeconomic uncertainties and geopolitical events are expected to continue influencing market momentum," analysts stated.
The precious metals lost their earlier gains when Trump mentioned that the ongoing conflict was nearing its end but cautioned that the United States could take military action against Iran "very forcefully" within the next two to three weeks.
He also indicated that the military operation was achieving its goals and called upon allies reliant on Middle Eastern oil to assist in addressing the near-closure of the Strait of Hormuz.
Furthermore, oil prices have surged, with Brent crude futures rising 5.24 percent to $106.47 per barrel, and US WTI futures increasing by 4.5 percent to $104.64.
Point of View
I present an unbiased overview of the current market situation. The decline in gold and silver prices underscores the market's sensitivity to geopolitical events and macroeconomic factors. Investors should remain vigilant as these conditions evolve.
NationPress
5 Aug 2026
Frequently Asked Questions
Why did gold and silver prices fall?
The prices fell after President Trump’s address failed to provide new signals regarding a resolution to the Middle East conflict, disappointing investors.
What were the specific declines in prices?
Gold futures dropped by 2.31%, reaching Rs 1,50,145, while silver futures fell by 5.59%, hitting Rs 2,29,888.
How do geopolitical tensions affect precious metal prices?
Geopolitical tensions can lead to increased demand for safe-haven assets like gold and silver, but uncertainty can also result in price volatility.
What is the current outlook for gold and silver?
Analysts suggest a cautious outlook, with ongoing macroeconomic uncertainties and geopolitical developments expected to influence market momentum.
How are oil prices related to the situation?
Oil prices have risen significantly as political actions and military tensions in the Middle East may affect supply routes, impacting global markets.
