Gold, silver prices today: Comex gold and silver extend losses as Middle East tensions fuel rate hike fears

Gold and silver prices remained under pressure for the second consecutive session on Thursday, July 16, as escalating tensions in the Middle East reinforced expectations that the US Federal Reserve could keep interest rates higher for longer, while renewed fears of a broader regional conflict further weighed on investor sentiment.

After declining $18 per troy ounce in the previous session, Comex gold futures fell another $74 to an intraday low of $3,977 per ounce, slipping below the key $4,000 mark. A break below $3,955 could drag the yellow metal to its lowest level in nearly eight months.

Silver, which is typically more volatile than gold, dropped another $1.80 per troy ounce to $55.65, its lowest level since early December.

The precious metals, which had attracted safe-haven buying earlier this month as geopolitical tensions briefly eased, came under renewed selling pressure after hostilities between the US and Iran escalated, reviving concerns over tighter monetary policy.

The United States intensified its military campaign against Iran for a fifth consecutive day, targeting missile storage facilities and launch sites near the strategic Strait of Hormuz.

Iran responded with missile and drone attacks on US allies in the region and warned that its military response could escalate further.

The renewed hostilities have effectively derailed the interim truce and raised fears of a return to a full-scale regional conflict.

US President Donald Trump has pledged to intensify military operations until Iran stops attacking vessels in the Strait of Hormuz and agrees to reopen the vital shipping route.

Meanwhile, Iran warned on Thursday that it would "crush" key targets in the Middle East if the US follows through on threats to target the country's infrastructure, according to CNBC.

The escalation has rekindled concerns over higher energy prices, persistent inflation, and the possibility of higher interest rates, weighing on non-yielding assets such as gold and silver.

Crude oil prices also resumed their upward march, with Brent crude trading above $85 a barrel, more than 15% higher than levels seen before the conflict, although still well below the nearly $120 touched at the height of the war.

Gold has been trading around the $4,000 level in recent weeks after declining 14% in the second quarter, its worst quarterly performance since 2013, as expectations of tighter monetary policy continued to pressure bullion.

MCX gold, silver erase previous day's gains

Tracking weakness in international markets, the near-month MCX gold futures contract fell ₹1,733 per 10 grams to an intraday low of ₹1,40,117, reversing all of the previous session's gains. From its recent peak of ₹1,48,089, the yellow metal has declined by nearly ₹8,000 in just nine trading sessions.

The MCX silver futures contract dropped ₹5,530 per kg to an intraday low of ₹2,15,090. A break below the ₹2.10 lakh mark could push the white metal to its lowest level since late March.

After reclaiming the ₹2 lakh level in November 2025, silver slipped below that mark only once in late March before staging a sharp recovery and climbing back above ₹3 lakh.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.