Gold, Silver ETFs Fall Up To 4% As U.S. Iran Remarks Weigh On Bullion Prices

Gold and silver exchange-traded funds declined up to 4% on April 2, 2026, mirroring a sharp drop in domestic and global bullion prices after fresh statements from U.S. President Donald Trump signalled continued military action in Iran.

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At 12:45 PM, Nippon India Silver ETF dropped 4.04%, while Tata Silver ETF fell 4.11%. Among gold ETFs, Tata Gold ETF declined 2.01%, Nippon India ETF Gold BeES slipped 2.22%, and ICICI Prudential Gold ETF was down 2.16%, according to exchange data.

MCX And Global Prices Decline

On the Multi-Commodity Exchange, gold and silver futures also registered losses. The June gold contract fell 3% to ₹1,48,981 per 10 grams, while the May silver contract declined nearly 6% to ₹2.29 lakh per kg.

In international markets, spot gold dropped 2% to $4,664.39 per ounce, while U.S. gold futures declined 2.5% to $4,691.10 per ounce, snapping a four-session rally.

Mining Stocks Under Pressure

Shares of Hindustan Zinc fell over 3% to ₹506.9, reflecting the drop in silver prices. The company is India’s largest silver producer. Shares of Vedanta Limited, its parent firm, declined up to 2% during the session.

U.S. Military Statement And Yield Movement

The decline in bullion prices followed remarks by Donald Trump stating that the United States would continue strikes on Iran over the next two to three weeks. According to market data, these developments pushed Brent crude prices up by more than 6%.

At the same time, U.S. 10-year Treasury yields and the dollar index have gone up, which has impacted non-yielding assets such as gold in a negative way. 

Impact on Broader Markets

The fall in gold and silver prices has been seen in local as well as overseas markets. Along with this, there has been a fall in futures trade on COMEX. This is due to the volatility experienced by commodities due to the political situation in West Asia.

The combined movement of crude oil, U.S. Treasury yields, and the dollar index has caused a correction in precious metals, which had hit two-week highs.