Gold and Silver Prices Fall Sharply Following US-Iran Interim Agreement on 18 June 2026

Gold and silver prices experienced significant declines across Indian markets on 18 June 2026, driven by geopolitical developments and commodity market shifts. Gold fell by approximately 1,687 rupees per 10 grams to trade at around 1,52,192 rupees, while silver declined by roughly 6,300 rupees per kilogram to 2,46,433 rupees. The sharp pullback followed an interim agreement reached between the United States and Iran after more than three months of conflict, which reduced geopolitical tensions and prompted a decline in crude oil prices.

On the Multi Commodity Exchange (MCX), August delivery gold opened at 1,52,306 rupees and slid to 1,52,163 rupees during early trading, representing a 1.10 percent decline from the previous session's close of 1,53,879 rupees. July delivery silver, which had closed at 2,51,807 rupees per kilogram, opened at 2,48,000 rupees and fell to as low as 2,45,509 rupees before recovering slightly to 2,46,433 rupees by mid-morning trading. The bullion market demonstrated volatility, with silver experiencing more pronounced losses than gold.

Price variations were observed across major Indian cities. In Delhi, Lucknow, Kanpur, and Jaipur, 24-carat gold was priced at 1,51,250 rupees, while Mumbai and Kolkata reported rates of 1,51,100 rupees. Chennai recorded slightly higher prices at 1,53,380 rupees. The bullion market showed relative stability for gold amid the decline, while silver prices fell more sharply. In the jewellery market, 24-carat gold remained flat at 1,51,100 rupees, 22-carat gold stood at 1,38,500 rupees, and silver dropped to 2,60,000 rupees per kilogram.

The decline reflects the inverse relationship between precious metals and geopolitical risk premiums. The US-Iran agreement, resolving tensions that had escalated over several months, removed a significant source of market uncertainty. As crude oil prices fell in response to reduced geopolitical risk, safe-haven demand for precious metals diminished, prompting investors to reduce holdings and contributing to the broader sell-off in the bullion market.