Gold and Silver Prices Plunge Amid US-Iran Conflict

Gold and silver prices experienced a significant decline in late June 2026, driven by a strengthening US dollar and escalating geopolitical instability. The downturn was marked by sharp drops in Comex gold futures to approximately $4,039.80 per ounce and silver to $58.415 per ounce, while Indian markets on the Multi Commodity Exchange saw gold futures fall 2.06% and silver plunge 6.4%.

Market volatility intensified following mutual attacks between the Federal government of the United States and Iran over the weekend of June 28. These hostilities threatened a fragile ceasefire, stalled peace negotiations, and jeopardized a recently renewed Memorandum of Understanding. The resulting instability rekindled fears of oil-linked inflation and was compounded by President Donald Trump's threats to impose 100% tariffs on the European Union.

Investors reacted to the turmoil by anticipating that the Federal Reserve System would raise interest rates to combat inflation, further weighing down precious metals. While the People's Bank of China continued purchasing gold and some bargain buying occurred following US inflation data, these factors were insufficient to offset the broader downward trend. Markets remain focused on upcoming US non-farm payrolls and unemployment figures to determine the central bank's next monetary move.