Gold dips 2%, silver tumbles over 4% after recent rally

Gold and silver prices fell sharply on Thursday (April 2), with COMEX gold dropping 2.21% to $4,677 per ounce and silver declining 4.22% to $72.87 per ounce, reflecting a combination of firm dollar demand and ongoing geopolitical uncertainty.

Investors reacted to US President Donald Trump’s prime-time remarks

on the Iran conflict, in which he indicated that Washington’s “core strategic objectives” were nearing completion but promised further strikes over the next two to three weeks.

The announcement rattled risk assets, reinforcing the dollar as a preferred safe haven.

“Precious metals are retracing after recent rallies, as traders assess the timing of potential de-escalation in the West Asia and the impact on energy prices,” said Renisha Chainani, Head of Research at Augmont.

A day earlier, gold and silver had surged in India following signs of easing tensions in West Asia, with 99.9% pure gold rising ₹3,500 to ₹1.55 lakh per 10 grams and silver jumping ₹9,000 to ₹2.46 lakh per kilogram on Wednesday (April 1).

Analysts had attributed the gains to expectations of softer oil prices and reduced long-term inflation pressures.

“Gold is likely to consolidate near $4,700 per ounce (~₹1.52 lakh per 10 grams) before attempting the next resistance around $4,900 per ounce (~₹1.58 lakh per 10 grams), while silver may stabilise near $75 per ounce (~₹2.42 lakh per kg) ahead of a potential move toward $80 per ounce (~₹2.58 lakh per kg),” Chainani added.

Market participants remain cautious, monitoring US macroeconomic releases, including jobs, retail sales, and manufacturing data, which may influence growth, inflation expectations, and the Federal Reserve’s monetary policy trajectory.