Silver rate today declined nearly 6% on Thursday, April 2, after U.S. President Donald Trump’s much-anticipated address failed to offer any reassurance on a possible de-escalation of the Middle East war, dampening sentiment across precious metals.
said the United States would continue its military campaign in Iran over the next few weeks, signalling that geopolitical tensions were likely to remain elevated. His remarks triggered sharp moves across commodities and financial markets, with investors reacting to the prospect of prolonged conflict.
On MCX, silver price fell 5.6% or ₹13,613 to ₹2,29,888 per kg, while Gold price on MCX declined 1.65% or ₹2,547 to ₹1,51,161 per 10 grams.
In international markets, spot fell 2.9% to $72.95. also traded lower, with spot gold down 1.3% at $4,694.48 per ounce as of 0202 GMT, while U.S. gold futures slipped 1.9% to $4,723.70. Earlier in the session, gold prices had risen more than 1% and touched their highest levels since March 19 before reversing course after Trump’s speech.
Other precious metals also came under pressure. Platinum dropped 1.8% to $1,928.26, while palladium declined 1.4% to $1,451.85.
Trump speech lifts oil, dollar, bond yields
In his televised address, Trump said the U.S. would strike Iran “extremely hard” over the next two to three weeks and push it back into the “Stone Ages.” He also said Washington’s strategic objectives in the conflict were close to being fulfilled, though the speech offered little indication of an immediate end to hostilities.
Following the address, oil prices surged more than 4%, while the 10-year U.S. Treasury yield and the dollar index also moved higher. The stronger dollar and rising bond yields weighed on greenback-priced metals, making them less attractive for investors.
While gold and silver are often considered safe-haven assets during periods of geopolitical instability and inflation, higher interest rates tend to cap gains in bullion by raising the opportunity cost of holding non-yielding assets.
Market expectations around U.S. monetary policy also remained unsupportive for precious metals. Investors continued to price in limited chances of a rate cut through most of 2026, with only a modest 25% probability of a cut seen at the December policy meeting.
Adding to the cautious outlook, St. Louis Federal Reserve President Alberto Musalem said on Wednesday that there was no immediate need for the U.S. central bank to alter its current interest rate stance, as inflation risks remained elevated.
That combination of geopolitical uncertainty, rising oil prices, a stronger dollar, and sticky rate expectations kept pressure on bullion and silver prices despite safe-haven demand staying broadly intact.