Gold and Silver Prices Experience Sharp Decline Amid Easing Geopolitical Tensions
In a significant market movement, gold and silver prices extended their downward trajectory for the second consecutive session on Friday. The precious metals witnessed a rapid technical breakdown shortly after the Opening Bell, with both COMEX gold and silver rates plummeting below crucial support levels.
COMEX Market Sees Dramatic Drop
The COMEX gold rate today broke decisively below the critical $4,750 per ounce support level, plunging to an intraday low of $4,671.74 per ounce within minutes of market opening. This represents a substantial decline that caught many traders off guard.
Similarly, the COMEX silver rate today experienced an equally dramatic fall, breaking below the important $70 per ounce support barrier and hitting an intraday low of $63.900 per ounce. The speed and magnitude of these declines highlight the intense selling pressure affecting precious metals markets.
MCX Performance Shows Contrasting Patterns
On the Multi Commodity Exchange (MCX) in India, the gold futures contract for April 2026 expiry closed at ₹1,52,260 per 10 grams on Thursday. This represents a significant decline of approximately ₹28,500 from its recent record high of ₹1,80,779 per 10 grams achieved just last week.
Interestingly, while the futures contract showed weakness, the MCX gold price in India actually finished marginally higher on Thursday, indicating some divergence in market behavior between different instruments and timeframes.
The MCX silver rate ended at ₹2,46,452 per kilogram, which stands approximately ₹1,73,500 below its record high of ₹4,20,048 per kilogram. Both gold and silver had reached these record highs on Friday of the previous week, meaning the current declines have occurred over just four trading sessions.
Geopolitical Developments Drive Market Sentiment
Market experts attribute the selling pressure on gold and silver prices primarily to the strengthening US Dollar, which has gained momentum due to easing tensions between the United States and Iran. The two nations have announced plans to resume nuclear negotiations on Friday in Oman, reducing the immediate geopolitical risk that typically supports safe-haven assets like precious metals.
Anuj Gupta, a SEBI-registered market expert, explained the situation clearly: "Gold and silver rates today are under pressure because of the easing US-Iran tension. Both countries have announced that they will initiate talks for a possible nuclear deal. The first US-Iran talks are taking place on Friday this week, which has fueled demand for the US Dollar against major global currencies and hit the safe-haven demand for gold and silver."
Broader Market Implications
The rapid decline in precious metals prices highlights how sensitive these markets are to geopolitical developments and currency movements. The strengthening US Dollar, driven by reduced safe-haven demand and improved risk appetite, has created a challenging environment for gold and silver investors.
Market participants will be closely watching the progress of US-Iran negotiations, as any developments could quickly reverse or accelerate the current trend in precious metals prices. The speed of the decline from recent record highs serves as a reminder of the volatility inherent in commodity markets, particularly those influenced by geopolitical factors and currency dynamics.
