Prices of gold, silver, and crude oil had surged significantly following the outbreak of the conflict between the United States and Iran. However, after U.S. President Donald Trump announced that a comprehensive peace agreement had been reached with Iran and Tehran indicated that shipping through the Strait of Hormuz would resume, commodity prices have begun to ease.
Gold prices, which had witnessed fluctuations over the past few months, have continued to trend lower following the announcement of the agreement. Gold is currently trading around ₹1.44 lakh per 10 grams, while crude oil prices have fallen more sharply than expected. On Wednesday, Brent crude prices touched their lowest level in nearly four months. Gold and silver prices have also declined amid rising U.S. bond yields and a stronger dollar, which have reduced investor demand for precious metals.
As of Wednesday morning, international gold prices fell by nearly $70 to around $4,057 per ounce, while silver was trading at about $60.95 per ounce. In line with these trends, the price of 24-carat gold in the Hyderabad bullion market dropped by around ₹2,000 to ₹1,47,100 per 10 grams. Silver prices fell by nearly ₹4,000, with one kilogram trading at approximately ₹2.29 lakh.
Market participants attribute the decline to investors shifting funds away from precious metals following the strengthening of the U.S. dollar index and rising bond yields.
Meanwhile, international crude oil prices witnessed a sharp correction on Wednesday, with Brent crude trading at $76.54 per barrel. Analysts attribute the decline to increased oil availability following the resumption of shipping through the Strait of Hormuz and reports of exemptions related to U.S. sanctions on Iranian oil exports.
Market experts believe crude oil prices could decline further in the coming days. A sustained fall in oil prices would reduce India’s import burden, potentially supporting the rupee and easing inflationary pressures. However, despite the decline in global energy prices, there is no immediate indication that retail prices of petrol, diesel, and cooking gas in India will be reduced in the near term.
