Summary of this article
Gold prices hit a nearly two-month low, while silver, platinum, and palladium also saw a tumble in global markets
Rising crude oil prices, a stronger US dollar, and fears of higher-for-longer US interest rates are pressuring bullion prices
Investors now await US inflation data, US Fed signals, and US-Iran developments for further cues
Gold and silver prices came under pressure on May 28, extending losses across global markets as renewed US strikes on Iran, a stronger dollar, and higher crude oil prices weighed on sentiment.
On the Comex, gold futures for June delivery declined as much as 1.90 per cent to an intraday low of $4,363.50 per ounce, marking their weakest level in nearly two months and extending losses for a fourth consecutive session.
Silver futures for July delivery also tumbled up to 3.86 per cent to an intraday low of $72 an ounce on Comex.
Other precious metals were also under pressure. Platinum futures for July delivery slipped nearly 3 per cent to around $1,870 per ounce, while palladium futures for June delivery declined about 2.40 per cent to $1,364 per ounce.
Back home, trading on the Multi-Commodity Exchange (MCX) remained closed during the morning session on Thursday, May 28, on account of Bakrid. Trading on the exchange will resume in the evening session from 5 pm onwards.
Why Gold And Silver Prices Are Falling Today
The weakness in bullion prices is being driven by a combination of geopolitical tensions and macroeconomic concerns.
First, US military strikes on Iranian targets near the Strait of Hormuz have escalated tensions, but instead of boosting safe-haven demand, they have pushed crude oil prices higher by over 2–3 per cent, raising fears of persistent inflation. Higher inflation, in turn, reduces expectations of aggressive rate cuts from the US Federal Reserve (Fed).
International benchmark Brent crude oil futures surged up to 4 per cent to $96 per barrel, while the US benchmark West Texas Intermediate (WTI) jumped around 4.30 per cent to $92.50 a barrel.
Second, a strong US dollar is making dollar-denominated assets such as gold more expensive for overseas buyers. As the dollar rises, gold becomes costlier for holders of other currencies, leading to reduced demand for the metal globally. The US Dollar index, which measures the greenback against the world’s six major currencies, surged by 0.36 per cent to 99.50, its one-week high.
Third, US Fed officials, including Governor Lisa Cook and Vice Chair Philip Jefferson, have signalled that interest rates may stay elevated for longer, or even rise further if inflation risks persist due to tariffs, geopolitical conflict, and energy price shocks.
What To Watch Next
Gold prices have now corrected more than 22 per cent from the record high touched on January 29, 2026. The decline accelerated after the US-Iran conflict erupted in late February, with bullion sliding nearly 16 per cent since then amid rising inflation concerns, higher bond yields, and a stronger US dollar.
Going ahead, investors will closely watch the US Personal Consumption Expenditures (PCE) inflation data for cues on the US Fed’s rate trajectory. Market participants will also keep an eye on crude oil prices and developments around the Strait of Hormuz, as any further escalation in the region could stoke global inflation concerns.
Apart from this, commentary from US Fed officials, movement in the dollar index, and fresh developments in the US-Iran conflict are likely to remain key triggers for gold and silver prices in the near term.
Frequently Asked Questions
Why did gold and silver prices fall sharply today?
Gold and silver prices declined after fresh US strikes on Iran pushed crude oil prices and the US dollar higher. Rising oil prices increased inflation concerns, reducing hopes of near-term US Fed rate cuts and triggering selling pressure in bullion markets.
Why is a stronger US dollar hurting bullion prices?
Gold and silver are priced in US dollars globally. When the dollar strengthens, precious metals become more expensive for buyers using other currencies, reducing global demand and pressuring prices.
What should investors watch next for gold prices?
Investors should closely track US PCE inflation data, comments from US Fed officials, crude oil prices, and developments in the US-Iran conflict. These factors will likely decide whether bullion prices stabilise or see further downside.
