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Gold drops 1.5%, silver slides 3% as stronger dollar dents bullion rallyGold and silver prices fell as a stronger US dollar impacted bullion, amid tariff uncertainty and tensions between Washington and Tehran. .By Anshul  February 24, 2026, 8:43:49 AM IST (Updated)3 Min ReadGold and silver prices fell sharply on Tuesday (February 24) after a recent rally, as a stronger US dollar weighed on bullion even as investors tracked tariff uncertainty and escalating tensions between Washington and Tehran.

Spot gold declined 1.5% to $5,150 per ounce by 0125 GMT, retreating from a more than three-week high touched earlier in the session. US gold futures for April delivery slipped 1.1% to $5,171 an ounce.

Silver mirrored the decline, with spot prices dropping 3.1% to $85.50 per ounce after hitting a more than two-week high on Monday (Fenruary 23).

The pullback came as the dollar strengthened, making greenback-denominated commodities more expensive for holders of other currencies and curbing demand. The rebound in the US currency offset underlying support for bullion from persistent trade and geopolitical risks.

US President Donald Trump on Monday warned countries against backing away from recently negotiated trade deals after the Supreme Court struck down his emergency tariffs. He said Washington could impose higher duties under alternative trade laws if countries reverse course, adding another layer of uncertainty to global trade flows.

At the same time, the US State Department began withdrawing non-essential personnel and their families from its embassy in Beirut amid concerns over the risk of military conflict with Iran, reinforcing safe-haven demand in the background.

Monetary policy expectations also remained in focus. Federal Reserve Governor Christopher Waller said he would be open to holding interest rates steady at the March meeting if upcoming labour market data suggest improved conditions. Markets are currently pricing in three 25-basis-point rate cuts this year, according to CME’s FedWatch tool, though near-term easing expectations have moderated.

Satish Dondapati, Fund Manager – ETF at Kotak Mutual Fund, said gold’s recent strength was driven by policy-led uncertainty and safe-haven flows, but movements in the dollar and real yields continue to dictate near-term price action. He noted that stronger inflation data and shifting rate-cut expectations could keep bullion volatile.

Nikunj Saraf, CEO of Choice Wealth, said gold’s rally reflects tariff-related uncertainty and dollar weakness seen earlier, but sustainability will depend on how trade policy evolves and where real yields head. He advised investors to treat gold as a hedge within a diversified portfolio and prefer staggered allocations over aggressive lump-sum exposure.

Separately, the finance ministry said India’s gold and silver imports were not alarming and largely reflected seasonal demand. It noted that central bank purchases globally had contributed to higher prices and said the government is closely monitoring import trends and price movements.

-With agencies inputsContinue ReadingNote To ReadersDisclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.First Published: Feb 24, 2026 7:24 AM ISTTagsgoldGold Pricesgold ratessilversilver prices