Gold prices commenced the day with slight declines on the Multi Commodity Exchange of India on Tuesday, influenced by escalating tensions in the Middle East and increasing crude oil prices, which dampened market sentiment. US President Donald Trump cautioned that Iran would encounter significant repercussions should it disregard his 8 p.m. Tuesday deadline to reopen the strait, asserting that the nation “could be taken out” if it did not adhere to the directive. He stated that the US could eliminate all of Iran’s bridges and power plants “within four hours” if an agreement is not achieved.
MCX silver futures for May 2026 experienced a decline of Rs 1,579, representing a decrease of 0.7%, settling at Rs 2,31,800 per kg. In the interim, gold futures scheduled for delivery in June 2026 experienced a decline of Rs 356, representing a decrease of 0.2%, settling at Rs 1,49,625 per 10 grams. In the global marketplace, gold prices remained relatively stable. Spot gold maintained its position at $4,646.69 per ounce as of 0100, whereas US gold futures for June delivery experienced a slight decline of 0.2%, settling at $4,674.40 per ounce.
In contrast, silver prices faced downward pressure, with spot silver decreasing 0.9% to $72.11 per ounce. Market expectations regarding monetary policy have undergone a notable transformation in the wake of the Iran conflict, as traders have predominantly eliminated the likelihood of rate cuts occurring this year. Before the escalation, markets had been pricing in two rate cuts.