Gold, Silver Rates Today: Comex Gold Drops $117/Oz Silver Tumbles $2.4 As Iran-US Tensions Trigger Oil Price Rebound

(MENAFN- Live Mint) Amid uncertainty over a potential end to the three-month-long conflict in the Middle East, precious metals traded sharply lower in Monday's session. The latest escalation in the region has reinforced concerns that inflation could remain elevated, potentially keeping interest rates higher for longer.

Comex gold dropped another $117 per troy ounce to the day's low of $4,476, erasing all of its recent gains and putting the metal on track for a second consecutive day of losses. Gold has closed the last four months in the red and has lost more than 13% of its value since the beginning of the conflict.

Silver prices also remained under pressure, falling nearly $2.4 per ounce to the day's low of $73.5. The white metal, which is typically more volatile than gold, wiped out all of its May gains in today's trade. Over the last three months, silver prices have declined nearly 19%.

Tensions in the Middle East, which had remained relatively contained in recent weeks, resurfaced after Iran and the US exchanged attacks last week, raising fears that the conflict could escalate again to levels seen at the start of the war.

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Following the latest escalation, Iran reportedly said it would suspend the exchange of messages with the US in response to Israel's intensifying military operations in Lebanon.

According to the semi-official Tasnim News Agency, Iran's negotiating team will halt talks and the exchange of documents through mediators, accusing Washington of sending mixed signals and prolonging negotiations. Iran and the US have also accused each other of violating the fragile ceasefire in their three-month conflict.

A major sticking point in the negotiations remains Tehran's insistence on maintaining control over the Strait of Hormuz and preserving its nuclear programme.

Earlier this week, both nations had signalled a willingness to end the conflict, but the latest escalation tested those hopes and triggered a sharp rebound in crude oil prices, with both Brent and WTI crude surging more than 7% during trade.

Precious metals witnessed sharp volatility throughout May as hopes of de-escalation, along with conflicting statements from both the US and Iran, kept prices largely directionless.

On 20 May, US President Donald Trump said he had authorized a fresh wave of attacks against Iran this week, but was temporarily holding back after leaders of Qatar, Saudi Arabia, and the United Arab Emirates requested more time for diplomatic efforts.

Also Read | Iran suspends peace talks with the US over Israel's military action in Lebanon Also Read | US-Iran News LIVE: Iran halts talks with US over attacks on Hezbollah MCX gold hits two-week low; silver extends steep decline

Tracking weakness in the international market, the near-month gold futures contract on MCX dropped ₹2,448 per 10 grams to ₹1,53,297, its lowest level since 11 May. Over the last nine trading sessions, including today, the metal has fallen by ₹8,761 from recent highs, based on today's low.

Silver futures contracts also came under heavy pressure, falling ₹4,900 per kilogram to the day's low of ₹2,62,100. After crossing the ₹3 lakh mark earlier, silver failed to sustain the rally and has now declined by ₹42,791 from its peak, based on today's low.

Also Read | Gold, silver prices today: Check retail rates of 24K, 22K gold, 999 silver Also Read | India's Gold Import Bill Hits Record ₹6.77 Lakh Crore: The Full Breakdown

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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