Gold, silver, ETF prices fall despite Iran war concerns; here’s why

Metal prices such as gold and silver fell on Thursday as the US Federal Reserve's decision to hit pause on rate cuts outweighed, amid escalating geopolitical tensions in West Asia and the US-Israel-Iran conflict.

At 11:55 am, gold futures on the Multi Commodity Exchange (MCX) were trading 1.15 per cent lower at Rs 1.51 lakh per 10 grams. The yellow metal touched a day’s low of Rs 151,104, slipping from its previous close of Rs 1.53 lakh. 

Silver took an even took a hit, dropping 3.30 per cent to Rs 2.39 lakh per kg against Wednesday's close of Rs 2.48 lakh. The white metal hit a day's low of Rs 239,997 per kg.

Meanwhile, ETFs also slipped in early trade; HDFC Silver ETF declined 4.67% to trade at Rs 226.14, while HDFC Gold ETF fell 2.44% to Rs 128.76.

Deveya Gaglani, Senior Research Analyst - Commodities at Axis Securities, said that COMEX gold dropped nearly 4 per cent in the previous session, logging its sharpest decline in two weeks and closing below its 60-day EMA for the first time since July 2025.

"A hawkish pause by the Federal Reserve, along with elevated Treasury yields, weighed on gold’s safe-haven appeal despite escalating tensions in the Middle East," Gaglani said. 

"While ongoing geopolitical tensions offered some support at lower levels, a stronger US dollar capped any meaningful upside in the yellow metal," Gaglani added.

Ponmudi R, CEO of Enrich Money, observed that COMEX gold opened on a cautiously firm note, finding a strong floor above key short-term support levels.

"The broader trend remains constructive, supported by renewed safe-haven demand amid ongoing geopolitical tensions in the Middle East," Ponmudi said. On the domestic front, he highlighted that MCX Gold is currently trading above the vital Rs 1,50,000 to Rs 1,52,000 support band. "Although the session began with a mild gap-down, reflecting softer global cues and overnight volatility, prices have managed to stabilise near crucial levels," Ponmudi noted. 

“A sustained move above Rs 1,57,000 would strengthen bullish momentum and may open the path toward Rs 1,60,000–Rs 1,65,000, where supply pressure is likely to emerge,” Ponmudi said.

"MCX Silver has started the session on a weak note and is currently trading within the Rs 2,42,000–Rs 2,40,000 support band after failing to sustain above key resistance levels," Ponmudi observed. He cautioned that a breakdown below the immediate support of Rs 2,38,000 could accelerate the fall, dragging prices down toward the Rs 2,31,000 mark. On the flip side, breaking past the Rs 2,50,000 resistance could spark a recovery.