Gold prices declined 2.5% to $4,440 per ounce and silver fell 4.5% to $69.30 per ounce on Thursday, retreating after two straight sessions of gains as investors held back awaiting clearer signals on efforts to de-escalate tensions in the Middle East. According to The Economic Times, spot gold dropped 2.1% to $4,457 while gold futures for April delivery fell 2.1% to $4,457. The precious metals decline comes despite earlier gains, with gold having surged past $5,500 an ounce earlier in 2026 amid geopolitical tensions and macroeconomic concerns. Gold, which had surged past $5,500 an ounce earlier in 2026, has now retreated to around $4,550, with experts noting that the metal has come under unexpected pressure in 2026 despite escalating geopolitical tensions in the Middle East.
Iran has rejected the US President Donald Trump's 15-point settlement plan and month-long ceasefire proposal, according to The Wall Street Journal. Tehran declined the proposal passed via Pakistan and set out conditions for talks, including a new order in the Strait of Hormuz to allow transit fees, guarantees the war would not restart, and an end to Israeli strikes on Hezbollah. A US official described these demands as "ridiculous and unrealistic," raising concerns that conflict may persist and keep oil supply disrupted. U.S. President Donald Trump said Iran was eager to strike a deal to end nearly four weeks of conflict, his remarks standing in contrast to Iran's foreign minister who said Tehran was reviewing a U.S. proposal but was not looking to engage in talks to end the fighting. Trump has also warned of tougher action if Iran does not accept that it has been "defeated militarily," according to White House press secretary Karoline Leavitt.
Brent crude futures moved back above $100 per barrel amid concerns that prolonged conflict in the region could further disrupt energy supplies. According to The Economic Times, Brent crude futures have already rallied past $95 a barrel this month, with fears over the Strait of Hormuz translating directly into a bullish case for oil derivatives. Since the start of the U.S.-Israeli conflict with Iran, Tehran has targeted countries hosting U.S. military bases and effectively shut the Strait of Hormuz, a key route that handles about one-fifth of global oil and liquefied natural gas flows. Rising crude prices tend to stoke inflation by increasing transportation and manufacturing costs, though inflation typically supports gold as a hedge, elevated interest rates reduce its appeal as a non-yielding asset. Market expectations have also shifted sharply, with traders now seeing almost no chance of a Federal Reserve rate cut this year, compared with expectations of at least two cuts before the conflict began.
Indian equity benchmarks, the BSE Sensex and Nifty 50, are likely to open on a negative note on March 27, tracking losses in GIFT Nifty, which was trading lower at 23,170. According to The Economic Times, this signals a weak opening for Indian equity indices after the previous session's relief rally. The Sensex had closed up 1,205 points or 1.63% at 75,273.45, while the Nifty was up 394.05 points or 1.72% at 23,306.45 on March 25, supported by broad-based buying across sectors. However, GIFT Nifty at 23,170 indicates that Nifty may lose over 250 points at open, as reported by The Economic Times.
Goldman Sachs has downgraded India's equity market to "marketweight" from its earlier rating of "overweight", and also cut its 12-month Nifty 50 target to 25,300 from 29,500 earlier. This follows similar downgrades by Bernstein and UBS, as reported by The Hindu BusinessLine. The downgrades have further weighed on market sentiment amid ongoing geopolitical uncertainty linked to the Iran conflict. Market experts remain cautious despite the US President's conciliatory tones, with analysts noting that the durability of recent market rebounds hinges on geopolitical clarity.