Gold and silver prices continued their downward trajectory on Friday amid the ongoing conflict involving the United States, Israel, and Iran. 44 lakh. 46 lakh on Wednesday. The decline reflects a broader shift in investor sentiment as geopolitical uncertainties reshape global commodity markets.
25 lakh per kilogram. 35 lakh per kilogram. Over the past 28 days, influenced by the US-Iran tensions, gold has become cheaper by ₹15,382, while silver has seen a massive reduction of ₹41,000. This correction comes after a period of record-breaking highs earlier this year, signaling a volatile phase for precious metals.
Current Market Rates and Daily Correction
The latest market update from IBJA confirms a sharp intraday correction for both metals. 44 lakh per 10 grams after the ₹2,490 drop. 25 lakh per kilogram. Market observers note that the sudden increase in supply, coupled with reduced immediate demand, has contributed to this downward pressure on prices during Friday's trading session.
Comparison with All-Time High Levels
Both gold and silver are now trading Notably below their historical peaks. 76 lakh on January 29, 2026, but has since dropped by ₹32,000.60 lakh over the last 57 days. This represents a substantial correction from the peak levels seen at the start of the year, as the market recalibrates to new economic realities.
Impact of the Middle East Conflict
While gold is traditionally viewed as a safe-haven asset during wartime, the current conflict in the Middle East has triggered a different market reaction. Investors are increasingly prioritizing cash liquidity over physical assets, while due to the uncertainty surrounding the duration and scale of the conflict, many are selling their gold and silver holdings to maintain liquid funds. This shift from commodities to cash has been a primary driver behind the recent price slump.
Factors Driving the Price Decline
Beyond geopolitical tensions, profit booking by large-scale investors has played a crucial role in the price drop. After prices hit record levels in January, institutional investors began offloading their holdings to realize gains, leading to an influx of supply in the market, while Also, the firm stance taken by the US Federal Reserve regarding interest rates has impacted the appeal of non-yielding assets like gold, further contributing to the cooling of prices in the international and domestic markets.
Market Expert Observations
According to commodity analysts, the current trend reflects a complex interplay of global factors. Experts suggest that the preference for liquidity during periods of extreme geopolitical risk is outweighing the traditional safe-haven demand for bullion. According to officials and market reports, the volatility is expected to persist as long as the situation in the Middle East remains unresolved. The market is currently characterized by high supply and a cautious approach from retail buyers.