Gold prices slipped in the domestic futures market on Thursday, July 16, as investors reacted to renewed geopolitical tensions in the Middle East following fresh US military strikes on Iran. Silver prices also moved lower during early trade on the Multi Commodity Exchange (MCX).
Despite rising global uncertainty, both precious metals witnessed profit booking after recent gains, while traders continued to monitor developments in the US-Iran conflict.
Gold and silver prices on MCX today
At around 9:01 am, the MCX Gold August futures contract was trading 0.42% lower at Rs 1,41,207 per 10 grams.
Meanwhile, the MCX Silver September futures contract declined 0.40% to Rs 2,19,738 per kilogram during early trading.
The decline came after volatility increased in global markets as investors assessed the impact of the latest military developments in the Middle East.
Why are gold prices falling?
Gold prices in the international market also moved lower after giving up gains made in the previous session.
The precious metal fell by as much as 0.9%, trading near $4,025 per ounce, as traders booked profits despite escalating geopolitical risks.
Normally, gold benefits from global uncertainty because investors consider it a safe-haven asset. However, short-term price movements are often influenced by profit booking, stronger market sentiment and expectations around inflation and interest rates.
US-Iran conflict remains in focus
Market sentiment remains cautious after the United States launched another round of strikes on Iran, further intensifying tensions in the region.
US President Donald Trump has stated that military operations will continue until Iran stops targeting commercial and military vessels in the Strait of Hormuz, one of the world’s most important oil shipping routes.
The ongoing conflict has raised concerns about possible disruptions to global energy supplies, which could push oil prices higher and keep inflation elevated.
What investors are watching next
Investors are closely tracking geopolitical developments along with global economic indicators.
Any further escalation in the Middle East could increase volatility across commodity markets. At the same time, traders will also monitor inflation trends, central bank policy signals, and movements in the US dollar, all of which play a key role in determining gold prices.
Although gold has declined in early trade, analysts believe geopolitical uncertainty could continue supporting demand for safe-haven assets if tensions worsen.