Precious metals delivered a mixed performance in Tuesday trading as geopolitical brinkmanship eased slightly in the Middle East and New Delhi moved to curb physical inflows, disrupting traditional demand channels for gold and silver.

In early trading, spot gold was virtually unchanged at $4,565.40 an ounce, hovering near lows not seen since late March. On India’s Multi Commodity Exchange (MCX), gold futures for June delivery ticked up by Rs. 500 to Rs. 159,899 per 10 grams, capitalizing on a softer U.S. dollar. Conversely, silver contracts for July delivery tumbled 1%, shedding Rs. 1,151 to trade at Rs. 275,500 per kilogram, weighed down by New Delhi’s fresh restrictions on silver imports.

The primary catalyst for the morning’s stabilization was a sudden de-escalation of geopolitical tensions. Bullion markets found a fragile floor after U.S. President Donald Trump announced he would defer planned military action against Iran, bowing to diplomatic pressure from Middle Eastern leaders.

The pause on military intervention sent Brent crude slipping back below the $110-per-barrel threshold, offering a reprieve to global equity and bond markets. Because surging energy costs typically drive the inflation that makes gold attractive, the drop in oil prices paradoxically dampened some of bullion’s immediate appeal as a hedge, while concurrently easing worries that central banks would need to keep interest rates higher for longer.

In India, the world’s second-largest consumer of precious metals, regulatory headwinds took center stage. The Ministry of Finance implemented stringent new curbs on silver imports to rein in the country’s current account deficit, sending shockwaves through domestic silver futures.

Simultaneously, the finance ministry moved quickly to quell growing market panic regarding domestic reserves. In an official statement on Tuesday, government officials flatly rejected rumors that New Delhi was planning a mandatory gold monetization program targeting the vast wealth held by India’s wealthy temple trusts. The ministry further dismissed reports that the gold cladding temple towers and doors would be reclassified under India’s “Strategic Gold Reserves,” calling the speculation “completely untrue and without factual foundation.”

While the near-term outlook remains clouded by a dense slate of upcoming macroeconomic data—including U.S. housing statistics, global PMI readings, and the minutes from the latest Federal Reserve FOMC meeting—institutional analysts argue that the long-term bull case for gold isn’t dead yet.

Some Wall Street heavyweights have begun trimming their expectations. JPMorgan recently revised its average 2026 gold forecast downward to $5,243 per ounce, from a previous estimate of $5,708, citing a cooling of retail investor demand.

However, market technicians view the recent slide as a healthy retracement rather than the beginning of a cyclical downturn.