Gold, silver tumble 4% as Trump escalates Iran tensions
What's the story
Gold and silver prices witnessed a sharp decline today, with COMEX gold falling by 2.21% to $4,677 per ounce and silver plunging by 4.22% to $72.87 per ounce. The fall comes amid a combination of strong dollar demand and geopolitical uncertainty. Investors reacted to US President Donald Trump's prime-time address on the Iran conflict where he said Washington's "core strategic objectives" were nearing completion but promised more strikes in the next two-three weeks.
Market reaction
Precious metals retrace after recent rallies
The announcement from Trump has shaken risk assets, further strengthening the dollar as a preferred safe haven. Renisha Chainani, Head of Research at Augmont, said precious metals are retracing after recent rallies, as traders assess potential de-escalation in West Asia and its impact on energy prices. This comes after gold and silver prices surged in India yesterday amid signs of easing tensions in West Asia.