Gold and silver prices dropped sharply in international markets on Thursday as a stronger US dollar and rising geopolitical tensions after fresh US military action against Iran triggered fresh volatility across commodity markets. Concerns over persistent inflation and delayed interest rate cuts also weighed heavily on investor sentiment.

Spot gold slipped nearly 2 per cent to $4,368.99 per ounce, while COMEX gold futures were down 1.80 per cent at $4,367.90 per ounce during early trade. Silver prices saw steeper losses, with spot silver falling more than 3 per cent to $71.94 per ounce. COMEX silver also declined 3.56 per cent to $72.22 per ounce.

In India, trading on the Multi Commodity Exchange (MCX) remained closed on Thursday due to Eid al-Adha.

Market experts said uncertainty around ongoing US-Iran negotiations continued to pressure precious metals despite persistent geopolitical risks. Gold has now declined for two straight sessions and was trading near the $4,450-per-ounce level as investors tracked developments between Washington and Tehran.

The latest tensions escalated after reports suggested Iran’s Revolutionary Guards targeted a US airbase in response to recent US military action. The development pushed crude oil prices more than 3 per cent higher, increasing fears of supply disruptions and higher global inflation.

Analysts said key disagreements between the United States and Iran remain unresolved. Iran is reportedly seeking to retain control over the Strait of Hormuz and continue its nuclear programme, while US President Donald Trump has maintained that Washington would not accept what he called a “bad deal” and ruled out sanction relief despite Tehran’s demand for economic support.

With IANS inputs