Gold and silver prices decline on profit booking amid easing geopolitical concerns

Gold and silver prices saw a sharp fall in international markets on Thursday, January 15. Spot gold was down 0.5% to trade around $4,610 per ounce, while silver prices are down nearly 2% to trade around $89.50 per ounce. Meanwhile, domestic commodity markets remain closed in the first half on account of the election in Maharashtra. The trading in commodity markets will begin in the evening session at 5 PM.

Gold and silver are down today because of multiple factors. Investors are booking profits in precious metals after multiple sessions of record highs. Gold prices set a record high of $4,650 per ounce in previous trading sessions, while Silver prices surpassed $93 mark yesterday. As a results, investors are taking some profits away.

Gold prices decline also came after a softer tone from the US President Donald Trump on the Federal Reserve chair Jerome Powell. US President said he has no plans to fire Fed Chair Jerome Powell, despite the Justice Department criminal investigation, but added it was "too early" to say what he ⁠would ultimately do. This resulted in weak sentiments for bullion as safe-haven demand eased as uncertainty around US Fed Chairman resides.

Geopolitical tensions also eased after the US President Donald Trump said he may not intervene in Iran, staving off safe-haven demand. Iran is facing instability after nationwide protests, which is facing its worst domestic unrest since the 1979 revolution.

Crude oil prices are also trading lower, with Brent Futures trading around $64.2 per barrel, down 3.43%, while WTI Crude traded 3.3% lower, around $59.9. Oil prices slumped over 3% snapping a five-day winning streak after US President Donald Trump indicated a more restrained stance on Iran, easing fears of near-term supply disruptions.

In last few trading session, crude prices surged over 10%, reaching multi-month highs amid concerns over unrest in Iran could trigger US military action and disrupt production or shipping.