Gold Prices Decline Amid US-Iran Diplomatic Talks, Comex Prices Down

Global Markets Weigh in on US-Iran Talks and Ceasefire Deadline

The price of precious metals, including gold and silver, is consolidating on Tuesday, 21 April, as traders assess the possibility of success in US-Iran talks and the looming end of the ceasefire. A rebound in the US dollar is also putting a cap on the rally.

In COMEX trading, gold futures dropped $51 per troy ounce to an intraday low of $4,777, while silver futures fell $2 to $78.17. The decline in precious metal prices is attributed to the easing of inflation pressures following a pullback in crude oil prices in today's trade.

The dollar index hovered near 98 on Tuesday, making dollar-denominated bullion more expensive for holders of other currencies. The US is awaiting clarity on a potential second round of US-Iran peace talks this week, with the ceasefire set to expire on Wednesday. President Donald Trump has stated that Vice President JD Vance is ready to travel to Pakistan for negotiations.

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The US has maintained a naval blockade on Iranian ports until an agreement is reached. Iran has yet to confirm its participation in talks in Islamabad, although recent media reports suggest it is considering attending. If no agreement is reached, the US has threatened to target Iranian power plants and bridges.

Comparison of Gold and Silver Prices

The price of gold and silver has seen a decline in Monday's session after news of renewed disruptions in the Strait of Hormuz pushed oil and gas prices higher, reviving inflation concerns. Gold prices fell 1% and silver prices fell 2% in the previous session.

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Investors remain focused on developments in the Middle East, but attention will also turn to Kevin Warsh, President Donald Trump's nominee to lead the Federal Reserve, who is scheduled to testify before the Senate Banking Committee at 10 a.m. Washington time.

In the domestic market, the near-month gold futures contract on MCX dropped ₹900 to ₹1,53,051 per 10 grams, while silver futures on MCX also fell ₹3,531 per kilogram, touching an intraday low of ₹2,49,014 earlier in the day. The yellow metal has recovered ₹10,327 over the past three weeks and has also rallied ₹25,014 from its March low of ₹1,29,595. Meanwhile, silver futures have gained ₹29,188 over the last three weeks and rebounded ₹57,499 from their March low of ₹1,99,643.