Gold Price Slips Below ₹1 Lakh Amid Israel-Iran Conflict; Silver Hits Record High of ₹1.09 Lakh

Wednesday, June 18th: The gold price has slipped below ₹1 lakh, while the silver price has hit a record high of ₹1.09 lakh amid escalating tensions in the Middle East. This comes after the US President Donald Trump recently suggested missile strikes on Tehran by requesting citizens to evacuate the city as soon as possible.

As of Wednesday, June 18, 2025, silver is priced at ₹1,09,230 per kilogram, marking a significant increase from ₹1,07,210 per kilogram on Tuesday. The July 4 futures contract for silver also saw a robust gain of 2.28%, trading at ₹1,08,990 per kg.

In contrast, gold prices dropped to ₹99,620 per 10 grams from ₹99,960 the previous day, according to the Indian Bullion Association. This marks a significant drop below the ₹1 lakh psychological level, driven by heightened market uncertainty due to the Middle East conflict.

Why the Volatility?

The price fluctuations are largely due to renewed concerns over supply chain disruptions and investor risk aversion arising from the worsening Israel-Iran conflict, where it is anticipated that US President Donald Trump will help Israel in its war against Iran. In this particular market environment, safe-haven demand has distinctly favoured silver over gold.

Although gold is considered the biggest safe-haven asset, the comparatively smaller market size of silver, relative to gold, means that equivalent capital inflows can lead to more pronounced price movements. Hence, silver has reached its all-time high while gold has tumbled slightly.

Future Market Outlook

The record high in silver prices and the modest softening of gold reflect the current volatile investor sentiment in global markets. Traders are closely monitoring developments in the Middle East, with precious metals anticipated to remain sensitive to any further escalation of the conflict.

This development follows a period of strong performance earlier in the year for both gold and silver. However, current geopolitical tensions appear to be re-shaping investor preferences across the commodities sector.

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