Gold, silver rates today: Comex gold and silver extend losses for 5th day as Middle East tensions fuel rate-hike fears

Precious metals continued to trade lower for the fifth straight session on Thursday, June 11, as escalating tensions in the Middle East reinforced fears that higher inflation could force the US Federal Reserve to maintain a tighter monetary policy stance.

Comex gold futures fell another $87 per troy ounce to $4,046, the lowest level since November 2025. Over the last five sessions, the yellow metal has tumbled nearly 10%. Silver futures were down $3.15 per troy ounce at $61.95. The white metal was last seen around these levels in late March.

With today's decline, silver is down 8% so far this week, extending its losing streak to a fifth consecutive week, while gold has lost a similar 6% during the same period.

Investor appetite for safe-haven assets remained subdued as growing tensions in West Asia strengthened expectations of higher interest rates, making both gold and silver less attractive since they do not generate interest income.

US President Donald Trump said he would continue bombing Iran if it refused to agree to an interim peace deal, following a second night of clashes between the two sides. Meanwhile, Tehran announced a complete closure of the Strait of Hormuz to all vessels.

The renewed attacks reignited concerns that a potential peace deal in the region could be pushed further away, while also reviving fears that disruptions to shipping through the Strait of Hormuz may persist for longer than previously anticipated.

Both the US and Iran have held multiple rounds of negotiations but have failed to reach an agreement, with disagreements persisting over issues including the future of Iran's nuclear programme and control of the Strait of Hormuz.

The back-and-forth between hopes of de-escalation and fears of further conflict has kept precious metals highly volatile, while expectations of a US Federal Reserve rate hike have strengthened after US inflation data climbed to a three-year high.

To tackle rising price pressures caused by the conflict, the European Central Bank raised interest rates, becoming one of the first major central banks to respond to the inflationary impact of the Iran conflict. Central banks in Australia and the Philippines have also raised rates since the start of the war, and attention is now turning to policy decisions in larger economies.

For its part, the US Federal Reserve is expected to keep its benchmark interest rate unchanged when it meets next week under Chair Kevin Warsh, who was appointed earlier this year by President Donald Trump.

On the economic front, US producer prices climbed 6.5% year-on-year in May, the sharpest increase since November 2022 and above expectations of 6.4%, reflecting the deepening impact of the Strait of Hormuz closure on energy costs.

MCX gold slips below ₹1.47 lakh; silver drops ₹5,000

Tracking weakness in the international market, the near-month gold futures contract on MCX dropped ₹1,573 per 10 grams to hit a nine-week low of ₹1,46,444. The latest decline also widened its weekly losses to 5.3%.

The fall has erased a significant portion of its recent gains, with the metal now down ₹18,053 from its May high of ₹1,64,497. Silver futures on MCX also plunged ₹5,012 per kilogram to an intraday low of ₹2,30,493, the lowest level since 28 April.

After touching the ₹3 lakh mark in mid-May, the white metal has remained under sustained selling pressure and is now down ₹74,398 from that peak, highlighting the sharp correction in prices.

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