Precious Metals Decline Over 2% Amid Escalating US-Iran Tensions

Global Markets Shaken as Gold and Silver Prices Plummet Amid Middle East Tensions

The ongoing conflict in the Middle East has sent shockwaves through global markets, with gold and silver prices experiencing a significant decline on Monday, April 20. According to market data, the COMEX gold rate today dipped 2% to $4,780 per ounce, while the COMEX silver rate plummeted 2.5% to $78.75 per ounce during the Asian trading hours.

The sharp drop in precious metal prices is largely attributed to the recent attacks on ships in the Strait of Hormuz, which have heightened concerns about disruptions to energy supplies and added to inflation worries. Since the beginning of the US-Iran war in late February, gold has declined roughly 9%, while silver has lost around 14%.

The latest developments in the region have cast doubt over the chances of potential peace talks in Islamabad. President Donald Trump indicated that there was still scope for a deal, while reiterating threats to target Iranian power infrastructure and bridges. Iran, however, stated that there was no "clear prospect" of reaching an agreement.

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The prolonged conflict has led to a significant disruption in energy supplies, heightening inflation concerns and increasing the likelihood that central banks will keep interest rates elevated or even raise them further. This negative factor for non-yielding assets like bullion has put pressure on gold, which is priced in the US currency.

Precious Metal Prices Outlook

Brokerage firm Mirae Asset Mutual Fund noted that silver's outlook remains more volatile than gold, reflecting its dual precious and industrial metal role. Despite sharp corrections from early 2026 highs, the market is expected to post a sixth consecutive annual supply deficit, with mine supply constrained after years of underinvestment.

According to Ponmudi R, CEO of Enrich Money, safe-haven demand has moderated, but remains underpinned by lingering geopolitical uncertainty. Gold and silver are attracting selective buying interest at lower levels, suggesting improving sentiment and a more favourable risk-reward profile near key support zones.

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Gold Price Outlook

Ponmudi noted that gold is trading near the $4,850-$4,900 zone, extending its recovery, with price action indicating gradual stabilisation and improving short-term sentiment. On the weekly structure, gold is attempting to rebuild momentum above key support levels, with the $4,750-$4,700 zone acting as a strong base.

Silver Price Outlook

Ponmudi also noted that silver is trading near the $81-$82 zone, with gradual improvement in momentum and the formation of higher lows in recent sessions, indicating a recovery attempt. The $77-$75 zone is acting as an immediate support base.

Overall, the broader trend remains constructive with a positive bias, with declines likely to attract buying interest.