Investors Turn Away from Gold, Silver After US‑Iran Conflict Escalates

Historically, a falling equity market drives investors toward safe‑haven assets such as gold. This pattern broke on August 19 when the renewed US‑Iran standoff triggered a sell‑off in both gold and silver.

Silver futures for September delivery slipped to Rs 229,666 per kg on the MCX, a decline of more than Rs 2,700 from the prior close. Gold also fell, closing at Rs 154,262 per 10 g, which represents a 1.08 % drop.

Market analysts attribute the downturn to higher crude‑oil prices that have bolstered the U.S. dollar and pushed Treasury yields upward. The 30‑year yield touched a near‑two‑decade high, increasing the opportunity cost of holding non‑interest‑bearing assets like gold.

Despite the dip, demand fundamentals for the metals remain solid. Silver continues to benefit from industrial consumption, while gold retains its appeal as a hedge against inflation.

Current 22K and 24K gold rates (Rs per 10 g) for major cities are as follows: Noida, Lucknow, Delhi, Chennai, Jaipur, Chandigarh, Kanpur – 22K = 1,42,340 | 24K = 1,55,270 Mumbai, Kolkata, Bengaluru, Hyderabad, Ahmedabad, Pune, Kochi – 22K = 1,42,190 | 24K = 1,55,120 Patna – 22K = 1,42,240 | 24K = 1,55,170