The direct impact of the deepening geopolitical tension in the West and the war between America and Iran is now visible on the bullion market. Attacks on Iran have been intensified even before the deadline of the strict ultimatum given by US President Donald Trump to Iran to reopen the Strait of Hormuz. During this time, investors also seem to be cautious. Due to this effect, a fall in the prices of gold and silver was recorded in Delhi.
Market condition in data: What are the latest prices?
Prices of precious metals appeared under pressure in the domestic market on Tuesday:
- Silver: According to All India Bullion Association data, the price of silver has seen a huge fall of Rs 2,000 or about 1 percent. It has fallen to Rs 2,40,000 per kg (including all taxes) from Rs 2,42,000 on Monday.
- Sleep: Similarly, the price of gold of 99.9 percent purity also slipped by Rs 600 or 0.4 percent to Rs 1,53,200 per 10 grams. In the last trading session, it had closed at Rs 1,53,800 per 10 grams.
- Global Market: Due to caution in foreign trade internationally, spot gold is trading with a slight rise at $ 4,659.16 an ounce, while silver has fallen by almost 1 percent to $ 72.14 an ounce.
Global tension is the main reason for the fall in prices
The main reason for this movement in the bullion market is global diplomatic tension. “Gold prices came under pressure after Trump issued a fresh ultimatum to Iran,” said Saumil Gandhi, senior analyst, commodities, HDFC Securities.
Trump has warned that if the Strait of Hormuz is not opened by a Tuesday deadline, there will be new military strikes on Iran’s power plants and other civilian infrastructure. Geopolitical tensions escalated further on Tuesday when President Trump warned in a post on the ‘Truth Social’ platform that “an entire civilization will collapse tonight” if Iran does not reach a deal. However, Tehran has rejected this ultimatum and continues its attacks on energy assets in West Asia.
What effect on crude oil prices?
While the bullion market is sluggish, these harsh statements and concerns of military confrontation have pushed crude oil prices higher. In New York, West Texas Intermediate (WTI) rose 3.08 percent to $ 115.87 per barrel, and Brent crude also rose 1 percent to $ 110.80 per barrel.
What to expect next?
The movement of the commodity market in the coming days will depend on international developments. Analysts estimate that the ups and downs in the bullion markets are expected to continue. Now the eyes of market experts and investors will be mainly focused on the latest developments in West Asia, movement of crude oil prices and upcoming macroeconomic data of America for new signals.