Silver Price Plunges ₹13,000 Amid Global Market Turbulence Triggered by Donald Trump's Remarks

Global Markets Plummet as Trump's Speech Fails to Deliver Reassurance on Middle East War

On Thursday, April 2, the silver rate declined nearly 6% after U.S. President Donald Trump's address failed to offer any reassurance on a possible de-escalation of the Middle East war, dampening sentiment across precious metals. Trump's remarks triggered sharp moves across commodities and financial markets, with investors reacting to the prospect of prolonged conflict.

On the Multi Commodity Exchange (MCX), the silver price fell 5.6% or ₹13,613 to ₹2,29,888 per kg. In contrast, the gold price on MCX declined 1.65% or ₹2,547 to ₹1,51,161 per 10 grams. Internationally, spot silver fell 2.9% to $72.95. Gold also traded lower, with spot gold down 1.3% at $4,694.48 per ounce as of 0202 GMT. U.S. gold futures slipped 1.9% to $4,723.70.

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Other precious metals also came under pressure, with platinum dropping 1.8% to $1,928.26 and palladium declining 1.4% to $1,451.85.

Trump's speech lifted oil, dollar, and bond yields. He stated that the U.S. would strike Iran "extremely hard" over the next two to three weeks and push it back into the "Stone Ages." The stronger dollar and rising bond yields weighed on greenback-priced metals, making them less attractive for investors.

While gold and silver are often considered safe-haven assets during periods of geopolitical instability and inflation, higher interest rates tend to cap gains in bullion by raising the opportunity cost of holding non-yielding assets. Market expectations around U.S. monetary policy also remained unsupportive for precious metals, with only a modest 25% probability of a Federal Reserve rate cut seen at the December policy meeting.

St. Louis Federal Reserve President Alberto Musalem said on Wednesday that there was no immediate need for the U.S. central bank to alter its current interest rate stance, as inflation risks remained elevated. The combination of geopolitical uncertainty, rising oil prices, a stronger dollar, and sticky rate expectations kept pressure on bullion and silver prices despite safe-haven demand staying broadly intact.

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