Gold & Silver Prices Plunge as Iran Peace Talks Stall

Gold and silver prices plummeted on Monday due to stalled US-Iran peace talks and rising crude oil prices, which reignited concerns about inflation and expectations of higher interest rates from the Federal Reserve.

The COMEX gold futures dropped by over 2% to hit an intraday low of $4,224.1 per ounce, while silver's fall was more severe, losing around 4% to hit a low of $62.21 per ounce.

Elevated US Treasury yields and a stronger dollar also weighed on market sentiment, with experts attributing the sharp decline in gold and silver prices to the unexpected effect of higher crude oil prices.

Ashish Rajodiya, Head, Commodities at PL Capital, noted that elevated crude prices are instead reinforcing the case for further Fed tightening, feeding a stronger dollar and steeper yield curve that works against non-yielding bullion.