Precious Metals Fall as US-Iran Tensions Rise Ahead of Ceasefire Deadline

Gold, silver, and platinum declined on Monday as renewed geopolitical concerns pressured commodity markets. Investor sentiment weakened after reports that the United States Navy fired on and seized an Iranian cargo vessel in the Gulf of Oman, raising fears just days before the current ceasefire between the United States and Iran is set to expire.

Precious metals had rallied strongly last week, supported by hopes of easing tensions. Silver had gained more than 6% on Friday, while optimism around temporary progress in the region helped risk sentiment. However, those gains quickly faded as uncertainty returned.

Silver dropped to $79.89, while platinum led losses with a decline to $2,094.20. Gold also moved lower, trading near $4,792.48. The pullback reflected a broader shift away from safe-haven assets after volatility increased across multiple markets.

Industrial metals also softened. Copper fell after recently reaching its highest close since early February, while zinc and lead also posted declines.

Meanwhile, battery-related commodities performed better. Lithium advanced, and iron ore along with steel recorded modest gains, showing stronger resilience compared with precious metals.

Oil prices surged sharply, with Brent rising as much as 7.9% and WTI climbing more than 7% toward the $90 level. Higher energy prices reignited inflation concerns, reducing expectations for near-term Federal Reserve rate cuts. This added further pressure on non-yielding assets such as gold and silver.

The cryptocurrency market also weakened during the broader sell-off. Total market capitalization fell over the past 24 hours, while Bitcoin briefly moved below $74,000 before stabilizing near $74,190.

Attention is now centered on Wednesday’s ceasefire deadline and whether a new round of diplomatic talks will begin. Reports suggest US negotiators are traveling to Islamabad, although mixed signals continue to emerge regarding Iran’s participation.

Future moves in precious metals are likely to depend on whether both sides return to negotiations and whether progress can be achieved.