Comex Gold Prices Fall $86 Per Ounce, Silver Decreases by $1.5 Per Ounce Amid Pre-FOMC Oil Price Surge

Precious Metals Extend Losses as Inflation Concerns Rise

Precious metals suffered a significant decline on Wednesday, with gold and silver futures plummeting to their lowest levels in a month. Gold futures on the COMEX dropped $86 per troy ounce to an intraday low of $4,522, marking a 4% month-to-date decline. Silver futures fell $1.5 to $71.71, the lowest level since April 7, and are now down 14% from their recent high of $83.24 over the last seven trading sessions.

The latest selloff has dragged gold's month-to-date decline to 4%, while silver has fallen 4.16% so far in April. Both metals are now on track to post a second consecutive monthly loss. The decline in precious metals can be attributed to the surge in crude oil prices, which has intensified inflation concerns and reinforced expectations that central banks may keep interest rates higher for longer.

Rising energy prices have weakened safe-haven demand, as elevated crude prices could reignite inflationary pressures, prompting central banks to maintain a tighter interest-rate stance. While bullion is traditionally viewed as an inflation hedge, higher interest rates reduce its appeal as a non-yielding asset. Brent crude, the international benchmark, gained another $4.34 to hit $115.60 a barrel, extending its winning streak to eight straight sessions.

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Earlier this month, precious metals attracted buyers after US President Donald Trump announced a ceasefire, which was later extended, raising hopes that the ongoing conflict could move toward resolution. However, tensions have continued to simmer since then, as both Iran and the US have failed to agree on key terms. The diplomatic deadlock has also reportedly prompted Trump to consider extending the blockade of Iranian ports.

The US Federal Reserve's policy decision later in the day will be closely watched by investors, as commentary from policymakers on the future rate path will influence the next move in gold and silver prices. Despite the escalating tensions, equities across key global markets remained relatively resilient, while precious metals continued to weaken.

Global Market Comparison

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The weakness in the international market has also affected the Indian market, with the near-month gold futures contract on MCX falling ₹2,077 to ₹1,47,950 per 10 grams, extending its losing streak to a third straight session. The silver futures contract on MCX dropped modestly by ₹493 per kilogram to the day's low of ₹2,36,852.