Domestic and international precious metals markets experienced downward pressure on Tuesday morning as fresh US military actions in the Middle East reignited global inflation anxieties, overshadowing ongoing diplomatic negotiations.

MCX Silver Futures (July 2026 Delivery): Dropped by Rs. 3,731 (1.3%) to Rs. 2,72,985 per kilogram. MCX Gold Futures (June 2026 Delivery): Slipped by Rs. 547 to Rs. 1,58,534 per 10 grams. Global Spot Gold: Declined 0.7% to $4,537.54 per ounce.

The market reversal follows an announcement by the US Central Command confirming targeted strikes against missile launch positions and mine-deploying vessels in southern Iran. The sudden military escalation immediately disrupted recent optimism surrounding a potential US-Iran peace framework being brokered by Qatari mediators in Doha.

In response to the strikes, crude oil prices surged over 2%. The rebound in oil prices has fueled investor concerns over energy-driven, sticky inflation, reinforcing expectations that global central banks—including the US Federal Reserve—will maintain elevated interest rates for a prolonged period. While bullion is traditionally a hedge against inflation, higher interest rates increase the opportunity cost of holding non-yielding assets, strengthening the US dollar and lowering the appeal of gold.

Traders are expected to remain cautious, keeping a close eye on upcoming US economic indicators scheduled for release later this week, including GDP figures and Personal Consumption Expenditure (PCE) inflation data, for definitive policy directions.