Gold and silver prices witnessed a sharp correction on March 3, even as geopolitical tensions between the US and Iran continued to rattle global markets.
On the Multi Commodity Exchange (MCX), gold futures for April 2 delivery were trading at ₹1,61,390, down ₹4,684 or 2.82% as of 9:49 PM. Silver futures for May 5 delivery slipped even more sharply to ₹2,66,333, down ₹12,148 or 4.36%.
The fall in precious metals comes amid heightened volatility across asset classes following developments in the ongoing US-Iran conflict.
Latest on US-Iran war
The International Atomic Energy Agency (IAEA) confirmed damage to Iran’s nuclear fuel enrichment plant but said there was no radiological impact.
Adding to the uncertainty, former US President Donald Trump posted on Truth Social stating, “Their air defense, Air Force, Navy, and Leadership is gone. They want to talk. I said ‘Too Late!’” The statement intensified fears of further escalation, triggering sharp moves across global markets.
Crude surges while metals correct
While crude oil prices surged nearly 8–10% amid supply disruption concerns in the Middle East, precious metals saw heavy profit booking.
On MCX, crude oil (March contract) was trading at ₹7,120, up ₹623 or 9.59%, and natural gas rose 6.92% to ₹290.50.
The divergence suggests investors are reacting unevenly to geopolitical headlines, with energy markets pricing in supply risks while bullion markets face sharp intraday volatility.
Why gold and silver are falling
Despite gold traditionally being considered a safe-haven asset during geopolitical tensions, sharp rallies are often followed by profit booking. Extreme volatility in global markets, margin pressures, and positioning unwinds can also trigger temporary corrections in precious metals.
Silver, which has both safe-haven and industrial demand characteristics, typically sees amplified moves compared to gold during periods of heightened volatility.
What to watch next
With global equity markets under pressure and crude prices spiking, bullion traders will closely monitor:
•Further escalation or de-escalation in the US-Iran conflict
•Dollar index movement
•Global bond yields
•Central bank commentary
For now, gold and silver remain highly volatile as markets digest geopolitical risks and reposition portfolios amid sharp cross-asset movements.