Gold and Silver Prices Slump Amid Geopolitical Tension

Precious metals experienced a sharp decline on July 13, 2026, as gold and silver prices fell for a second consecutive session. Gold dropped $104 to trade at an intraday low of $4,009 per ounce on Comex, while MCX gold futures fell nearly ₹3,000 to ₹1,40,873 per 10 grams. Silver faced an even steeper correction, crashing over 2% globally as investors reassessed safe-haven holdings amid evolving market conditions.

The primary trigger for the price drop stems from escalating tensions between the US and Iran, specifically the closure of the Strait of Hormuz. This geopolitical instability has spiked crude oil prices by over 4%, fueling fears of persistent inflation. With June inflation in the US reaching 4.2%, markets now anticipate that the Federal Reserve will likely maintain higher interest rates for an extended period, dampening the appeal of non-yielding assets like gold.

While central banks continue to buy gold for long-term reserves, the immediate market environment remains volatile. Copper prices also slid as increased Chinese refining capacity outpaced supply disruptions from major mines. The market currently prices a 70% probability of a Fed rate hike in September. Investors are watching for any stabilization in oil prices and central bank policy signals as the primary drivers that will dictate the direction of commodity markets throughout the second half of 2026.