Gold Prices Drop to $5,200 per Ounce, Silver Price Nears $90: Market Outlook Uncertain

Gold and Silver Prices Report

Current Market Trends

• Spot gold rate: fell by 0.48% to $5,201 per ounce on Thursday, following a marginal downturn after regaining strength the previous day.
• Spot silver prices: slid by approximately 2% to $89.5 per ounce during Asian trading hours.

Market Drivers

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• The US imposed sanctions on over 30 entities linked to Iranian oil and weapons trade, intensifying pressure on Iran ahead of nuclear talks in Geneva.
• The US military buildup in the region and President Donald Trump's warning of "serious consequences" if Iran does not agree to a deal contributed to increased tensions.
• The Trump administration's efforts to safeguard the president's tariff agenda, including a directive to raise the global tariff rate to 15%, added to tensions with global trading partners.
• The US dollar index slipped below 97.8, making commodities priced in the greenback more appealing to overseas buyers.

Market Outlook

• According to Ross Maxwell, Global Strategy Operations Lead at VT Markets, the dip in gold prices reflects the market trying to balance macro headwinds and safe-haven demand.
• Maxwell notes that a stronger US dollar and near-term profit taking can cap short-term upside, but structural drivers remain supportive, and gold can regain momentum if US yields stabilize.
• Ponmudi R, CEO of Enrich Money, believes the broader uptrend in gold prices remains intact, with prices holding above key moving averages and gradually edging higher.
• Ponmudi notes that COMEX Gold is trading in the $5,100–$5,300 zone and that strong buying interest remains visible in the $4,850–$5,000 support band.
• The medium- to long-term outlook for silver prices remains constructive, supported by industrial demand and structural supply constraints, according to Ponmudi.