Gold, silver slide up to 1% on MCX as US-Iran tensions ease
Synopsis
Gold and silver retreated sharply on MCX and COMEX after President Trump signalled a diplomatic opening with Iran and announced 'Project Freedom' to free stranded vessels in the Strait of Hormuz. The move trimmed the geopolitical risk premium that had kept bullion elevated — though Trump's simultaneous warning to Iran suggests the easing is far from certain.
Key Takeaways
MCX gold fell to an intraday low of ₹1,50,400 on 4 May , down 0.62 per cent from the previous close of ₹1,51,532 .
MCX silver hit a session low of ₹2,49,600 , a drop of 1.05 per cent or ₹2,599 .
COMEX gold declined 0.55 per cent to $4,619 per ounce ; COMEX silver fell 0.48 per cent to $76.065 per ounce .
President Trump announced 'Project Freedom' to guide stranded vessels through the Strait of Hormuz , reducing some safe-haven demand.
Brent crude fell 0.61 per cent to $107.51/barrel ; WTI dropped 2.77 per cent to $99.11/barrel .
A commodity expert flagged that a stronger dollar and hawkish central bank signals continued to weigh on bullion despite the geopolitical easing.
Gold and silver prices on the Multi Commodity Exchange (MCX) declined up to 1 per cent on Monday, 4 May, as remarks by US President Donald Trump signalled easing geopolitical tensions between the United States and Iran, reducing safe-haven demand for precious metals.
Gold Prices on MCX
Gold contracts for June 5 opened at ₹1,51,150, down ₹382 or 0.25 per cent from the previous close of ₹1,51,532. By around 11.30 am IST, gold was trading at ₹1,50,623, lower by ₹729 or 0.48 per cent. The yellow metal touched an intraday low of ₹1,50,400, a decline of 0.62 per cent or ₹952, and an intraday high of ₹1,51,347.
Silver Prices on MCX
Silver contracts for July 3 opened at ₹2,50,699, down ₹238 or 0.09 per cent from the previous close of ₹2,50,937. The white metal was subsequently trading at ₹2,49,600, down ₹1,337 or 0.53 per cent. Silver futures touched a session low of ₹2,49,600, a decrease of 1.05 per cent or ₹2,599, and a high of ₹2,51,231.
International Markets Under Pressure
In global markets, both precious metals remained under strain. COMEX gold fell 0.55 per cent to $4,619 per ounce, while COMEX silver declined 0.48 per cent to $76.065 per ounce. A commodity market expert noted that gold prices extended last week's losses, hovering near one-month lows, weighed by a stronger dollar and elevated crude oil prices. The expert added that while easing US-Iran tensions had reduced some safe-haven demand, supply risks in the Strait of Hormuz continued to fuel inflation concerns, prompting a cautiously hawkish stance from major central banks — a further drag on bullion.
Trump's 'Project Freedom' and Iran Warning
President Trump stated that the United States would launch 'Project Freedom' to guide vessels stranded in the Strait of Hormuz safely through the route, describing the initiative as a humanitarian gesture aimed at assisting neutral countries not involved in the ongoing US-Iran conflict. However, Trump warned that Iran would face a strong response if any threat emerged, keeping some residual geopolitical risk in play.
Crude Oil Also Drops
Brent crude fell 0.61 per cent to $107.51 per barrel, while US West Texas Intermediate (WTI) dropped a sharper 2.77 per cent to $99.11 per barrel. The broad commodity pullback reflects the market's recalibration as diplomatic signals — however tentative — temper the risk premium that had built up over weeks of US-Iran friction. How durable this easing proves will determine whether gold's retreat deepens or reverses in the sessions ahead.
Point of View
Yet his simultaneous warning of a 'strong response' to Iran signals the conflict's underlying fault lines remain intact. Markets are pricing in a ceasefire that has not been confirmed. With COMEX gold still above $4,600 and central banks in hawkish mode, the structural floor for bullion remains high — any reversal in US-Iran diplomacy could swiftly erase Monday's losses and push prices back toward recent peaks.
NationPress
3 Jul 2026
Frequently Asked Questions
Why did gold and silver prices fall on 4 May?
Gold and silver prices fell on 4 May primarily because US President Donald Trump signalled easing tensions with Iran, reducing safe-haven demand for precious metals. A stronger dollar and cautiously hawkish central bank stances added further downward pressure.
What is Trump's 'Project Freedom'?
'Project Freedom' is a US initiative announced by President Trump to guide vessels stranded in the Strait of Hormuz safely through the route. Trump described it as a humanitarian gesture for neutral countries not involved in the US-Iran conflict.
How much did MCX gold fall on Monday?
MCX gold for the June 5 contract touched an intraday low of ₹1,50,400 on Monday, a decline of 0.62 per cent or ₹952 from the previous close of ₹1,51,532.
What are the current COMEX gold and silver prices?
As of Monday's session, COMEX gold was trading down 0.55 per cent at $4,619 per ounce, while COMEX silver declined 0.48 per cent to $76.065 per ounce.
Did crude oil also fall alongside gold and silver?
Yes, crude oil prices also declined. Brent crude fell 0.61 per cent to $107.51 per barrel, while US WTI dropped a steeper 2.77 per cent to $99.11 per barrel on the same session.
