English
Hritika Mitra
Hritika Mitra is a Senior Sub-Editor at India.com. In her four years-long career, she has covered events ranging from the Iran-Israel War, the 2024 US presidential election, and the Russia-Ukraine War ... Read More
US President Donald Trump has announced the end of ceasefire between Iran and the United States on Wednesday. Following the announcement, share markets across the world, including India, saw a massive shake-up. Now, gold and silver prices have also seen a sharp decline.
While gold gained Rs 2,177 on the Multi Commodity Exchange Limited (MCX) to trade at Rs 143,215 per 10 grams, silver prices also climbed by Rs 6,615, with the metal trading at Rs 224,242 per kg. International precious metal prices witnessed a sharp correction, with gold slipping 2.38 per cent to $4,058 an ounce. Silver also fell 3.89 per cent to $58.945 per ounce.
Gold has been losing ground amid a stronger US dollar and rising crude oil prices. Reduced demand for the precious metal as a safe-haven investment has driven prices to their lowest point in nearly a week.
Over the last month, gold and silver have witnessed a steep correction on the MCX. Gold prices have slipped nearly 5.6 per cent, while silver has dropped 10.8 per cent. Analysts attribute the decline to the strengthening US dollar, interest rate worries, and investors booking profits after record highs.
While gold has come under pressure recently, analysts believe the ongoing tensions in the Middle East and worries about the security of vessels passing through the Strait of Hormuz could increase demand for gold as a safe-haven asset.
Although geopolitical risks have increased gold’s appeal as a safe-haven asset, the precious metal remains under pressure from a stronger US dollar and rising US Treasury yields. These competing factors are pulling prices in opposite directions.
The Nifty 50 plunged over 500 points, or more than 2 per cent, to 23,887.45, while the Sensex tumbled over 1,600 points, or around 2 per cent, to 76,555. Broader markets also came under heavy selling pressure, with Nifty Financial Services and Nifty PSU Bank among the worst-performing indices. India VIX surged over 28 per cent, reflecting heightened market volatility.
Market experts said Trump’s comments intensified concerns over a prolonged conflict in West Asia, sending oil prices sharply higher. Brent crude rose nearly 4 per cent to $76.71 per barrel.
“The sudden collapse of the Memorandum of Understanding (MOU) between the US and Iran has triggered a sharp wave of risk-off sentiment across global financial markets, hitting Indian equities particularly hard,” said market and banking expert Ajay Bagga.
“President Trump’s declaration that the peace process is ‘over’ injects severe geopolitical uncertainty right back into the critical Strait of Hormuz transit corridor. With crude oil prices surging rapidly on renewed supply and security fears, India faces a double whammy of potential imported inflation and fiscal pressure,” Bagga said.
US President Donald Trump on Wednesday said the memorandum of understanding signed with Iran to end the conflict was no longer valid. He added that he did not wish to continue talks with Tehran.
Also Read | Stock markets tumble over 2 percent on escalating US-Iran tensions, sharp surge in oil prices
The US-Iran interim ceasefire, facilitated by Pakistan, was intended to allow 60 days of negotiations aimed at reaching a permanent agreement. But talks held indirectly in Qatar ended without any breakthrough, followed by a new round of US strikes on Iran on Tuesday.
“To me, I think it’s over. I don’t want to deal with them,” Trump said ahead of a NATO summit in the Turkish capital Ankara. “They’re scum. They’re sick people. They’re led by sick people,” he added alongside NATO Secretary General Mark Rutte. “As far as I’m concerned, it’s just a waste of time dealing with them.”
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.