Gold and Silver Prices Plummet Amid Uncertainty Over US-Iran Ceasefire Plan

Precious Metals Market Update

26 March 2026

The precious metals market continued its downward trend on Thursday, as conflicting signals from the US and Iran on potential ceasefire talks kept traders on edge. May silver futures on COMEX reversed Wednesday's gains, tumbling $5.58 to an intraday low of $67 per troy ounce, erasing the entire previous session's rally. April gold futures also came under renewed selling pressure, plunging $143 to hit an intraday low of $4,409 per troy ounce.

Gold has been trading below $5,000 per troy ounce since 18 March and has declined 23% as of today's low. The metal has fallen over 15% since the US-Israel conflict with Iran began on 28 February. Both metals have witnessed sharp volatility this week following contradictory statements from US President Donald Trump and Iranian officials regarding a potential end to the war.

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Fears of higher interest rates continue to weigh on demand for safe-haven assets, while a stronger dollar is making dollar-priced commodities more expensive for holders of other currencies, further limiting any recovery. The US dollar index, which measures the greenback against a basket of six major currencies, is hovering around the 100 mark. Since the start of the war, it has strengthened by 2.3%, putting it on track for its biggest monthly gain since July 2025.

Disruptions from the conflict have pushed energy prices higher, fuelling inflation concerns and reinforcing expectations that the Federal Reserve will keep interest rates steady throughout the year. Meanwhile, US President Donald Trump warned Iran to "get serious" about a deal to end nearly four weeks of fighting after its foreign minister said Tehran was reviewing the US proposal but reiterated that there were no talks underway to wind down the war.

Domestic Market Update

The domestic bullion market resumed trading in the evening session after remaining closed in the first half due to Ram Navami. Following the reopening, April gold futures tracked global cues, falling ₹4,297 per 10 grams to the day's low of ₹1,39,800. Meanwhile, the May silver futures contract on MCX reversed its previous day's gains, dropping ₹15,254 per kilogram to hit an intraday low of ₹2,19,580.

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