Gold rises, silver slips as geopolitical cues and Fed signals steer markets

Gold prices advanced on Wednesday (April 1), while silver edged lower, as investors tracked developments in the West Asia and awaited cues from the US Federal Reserve on interest rates.

On the COMEX, gold rose 1.19% to 4,703 an ounce, gaining 55.50 from the previous close of 4,668.40 an ounce. The metal traded within a narrow range, touching a high of 4,703 an ounce and a low of 4,668 an ounce in the latest session.

Silver, however, declined 0.39% to 74.625 an ounce, down 0.294 from its previous close of 75.480 an ounce.

Markets remained sensitive to geopolitical signals.

US President Donald Trump said Washington had largely achieved its military objectives and suggested that responsibility for resolving tensions around the Strait of Hormuz should shift to other countries.

At the same time, Iranian state media cited President Masoud Pezeshkian as indicating that Iran is willing to end the conflict if its conditions are met, according to a Bloomberg report. The ongoing West Asua conflict, now in its fifth week, has disrupted global markets and constrained supplies of energy and other commodities, fuelling concerns over inflation and growth.

Despite the recent rebound, bullion prices remain under pressure on a monthly basis. Gold recorded a nearly 12% drop in March, marking its steepest decline since the Global Financial Crisis.

Investors are also closely watching signals from the US Federal Reserve. Fed Chair Jerome Powell recently noted that long-term inflation expectations remain stable, even as bond markets shift focus toward the potential economic impact of the ongoing conflict.

Market participants say the recent correction in gold follows an extended rally.

According to InCred Money, gold had surged more than 90% since March 2025, supported by strong central bank buying, persistent geopolitical tensions, and robust retail demand. The current pullback reflects a mix of profit booking and rising crude prices, which have reduced expectations of near-term rate cuts.

“While the correction appears sharp, it does not undermine gold’s long-term appeal as a safe-haven asset,” the firm said, adding that geopolitical uncertainty and gold’s low correlation with equities continue to support its role in portfolios.

Separately, Piyush Jhunjhunwala, Founder and CEO of Stockify, said gold prices in India are currently moving within a narrow range, signalling a phase of consolidation. He noted that while global factors such as inflation fears and currency movements continue to influence prices, domestic demand from weddings and festivals helps cushion downside risks.

He added that investor behaviour is evolving, with increased adoption of digital gold, ETFs, and sovereign gold bonds. “Gold is no longer just a defensive asset. It is being used as a strategic tool for diversification,” he said.

Analysts also point to a shift in investor behaviour, with digital platforms enabling quicker responses to price movements. Investors are actively booking profits during rallies and accumulating during corrections.