Gold edges lower, silver drops over 2% amid focus on US-Iran peace talks
COMEX gold fell $31.20, or 0.74%, to trade at $4,171.50 per ounce after touching an intraday high of $4,216.00 an ounce. COMEX silver witnessed sharper selling pressure, declining $1.573 or 2.40% to $64.010 per ounce. Silver touched a high of $65.315 an ounce and a low of $63.910 an ounce during the session.
Bullion prices remained under pressure after the United States temporarily waived sanctions on Iran for 60 days following preliminary peace talks, while reports of reduced tensions in Lebanon further weakened the safe-haven appeal of precious metals.
US Vice President JD Vance stated that recent talks with Iranian officials in Switzerland had created a positive foundation for a possible peace agreement. However, uncertainty persists after Iran denied reports that discussions over its nuclear programme had formally begun.
Market participants are now closely watching the US Federal Reserve’s policy outlook. According to the CME FedWatch Tool, traders are pricing in nearly a 90% probability of a rate hike in December, sharply higher compared to expectations before last week’s Fed meeting. Higher interest rates generally pressure gold and silver as they increase the opportunity cost of holding non-yielding assets.
Adding to market focus, Fed Chairman Kevin Warsh is scheduled to deliver his first congressional testimony on monetary policy on July 14, which investors expect could provide further clarity on the central bank’s future stance.
Commenting on the current trend, Mangesh Chauhan, MD of Sky Gold & Diamonds, said gold prices continue to witness periodic fluctuations driven by global economic developments, currency movements and investor sentiment. Despite short-term volatility, he noted that consumer demand in India remains resilient, particularly during weddings and festive seasons.
He further added that the jewellery industry is adapting to elevated price levels through efficient inventory management and a stronger focus on value-driven products, with growing consumer preference for lower-karat and studded jewellery.
Meanwhile, Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, said the Fed’s hawkish tone and geopolitical developments are currently dominating sentiment in precious metals markets. He noted that COMEX Gold has immediate support in the $4,100-$4,050 an ounce range, while silver continues to hold near the $63 an ounce level.
Kothari also highlighted that the upcoming US PCE inflation data, scheduled for release on June 25, will be a crucial trigger for near-term price direction in gold and silver markets.
Investors will also monitor flash PMI data from Germany, the Eurozone, the UK and the United States later in the day for fresh economic signals.
-With Reuters inputs
