Gold drops below $4,500 as Iran rejects Trump’s ceasefire; Silver slides below $70

Gold falls below $4,500 as Iran rejects US ceasefire; silver slides, and crude prices rise—know what’s driving the precious metals market. announces the Financial Express.

Just as the markets thought that gold and silver prices may hold steady, reports emerged that Tehran rejected the Trump administration’s ceasefire plan and insisted on sovereign control over the crucial waterway passage of the Strait of Hormuz. The precious metals markets reacted the same, as gold prices once again dropped below the important $4,500/oz mark, hitting an intra-day low of $4,413/oz. Silver too faced selling pressure, dropping below the $70/oz level and trading near the $67/oz mark.

As per media reports, the US is preparing to deploy thousands of troops in the Gulf region, further increasing fears of significant escalation in the Iranian conflict, which has now entered its fourth week. This is likely to weigh on investor sentiment, with the dollar emerging as a safe-haven winner.

On the domestic front, MCX will likely react to these global cues in the evening session today, as the exchange observed partial closure on the occasion of Shree Ram Navami

“As long as geopolitical uncertainty and inflation concerns persist, gold is likely to remain volatile. The near-term range for gold is seen between Rs 1,35,000–s 1,55,000,” said Jateen Trivedi, VP, Research Analyst – Commodity and Currency, LKP Securities.