Gold, silver rates today: Comex gold drops $67/oz; silver tumbles $2.2/oz amid rising oil prices and higher inflation

Gold and silver erased their recent gains on Tuesday, 12 May, as renewed tensions in the Middle East kept crude oil prices elevated, while rising US inflation and a stronger dollar further weighed on precious metals.

COMEX gold futures erased the opening gains to drop $67 per troy ounce, reaching an intraday low of $4,660, while silver futures declined $2.13 to hit an intraday low of $83.67.

Tensions in the Middle East are expected to escalate again after US President Donald Trump said the month-old ceasefire with Iran was “on life support,” following Tehran’s response to a US proposal aimed at ending the conflict, which highlighted that both sides remain far apart on key issues.

Trump, over the weekend, rejected Iran’s response to the US peace proposal, raising concerns that the conflict could drag on and continue disrupting shipping through the Strait of Hormuz.

Iran on Sunday reportedly released a proposal to end the war on all fronts, which included demands for compensation for war damage and emphasised Iranian sovereignty over the Strait of Hormuz.

Recent media reports also suggested that Trump will meet his national security team to discuss a potential restart of military operations and revisit plans to escort commercial ships through the Strait.

As hopes of near-term de-escalation continue to fade, crude oil prices have remained elevated, with Brent crude futures surging to $108 per barrel.

Oil prices have stayed high over the last two months, with the impact being felt across global economies, while the latest US inflation report showed that consumer prices have climbed to multi-year highs.

The annual inflation rate in the US accelerated to 3.8% in April 2026, the highest level since May 2023, compared to 3.3% in March. The war has pushed Brent crude prices nearly 50% higher from pre-war levels of around $70 per barrel, adding to inflationary pressures across the global economy.

The data has complicated the Federal Reserve’s policy path, increasing expectations of a potential 25 basis point rate hike by December.

Meanwhile, the higher inflation print also pushed the US Dollar Index to 98, making dollar-priced commodities more expensive for holders of other currencies.

Last week, another key economic report showed that US employment increased more than expected in April, while the unemployment rate remained steady at 4.3%, pointing to continued resilience in the labour market.

MCX gold slips over ₹600: silver hovers at ₹2.73 lakh

In the domestic market, the near-term gold futures contract on Multi Commodity Exchange of India slipped marginally by ₹647 per 10 grams to the day’s low of ₹1,53,016, while the silver futures contract fell ₹5,185 per kilogram to an intraday low of ₹2,73,126.

The white metal has remained elevated over the last five trading sessions, gaining a cumulative ₹34,416. In Monday’s session, silver touched its highest level since March 11.

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