On May 12, gold and silver prices experienced a significant decline, with COMEX gold futures dropping $67 per ounce to an intraday low of $4,660 and silver futures decreasing by $2.13 to $83.67. This downturn is attributed to rising tensions in the Middle East, particularly regarding the US-Iran conflict, which has kept crude oil prices elevated at $108 per barrel. The ongoing conflict has raised concerns about shipping disruptions through the Strait of Hormuz, further impacting global oil prices. Additionally, US inflation has surged to 3.8% in April 2026, the highest level since May 2023, exacerbating inflationary pressures and complicating the Federal Reserve's policy decisions. The stronger US dollar, with the US Dollar Index reaching 98, has made dollar-priced commodities more expensive for foreign holders. In the domestic market, gold futures on the Multi Commodity Exchange of India fell by ₹647 per 10 grams to ₹1,53,016, while silver futures declined by ₹5,185 per kilogram to ₹2,73,126. Despite the recent drop, silver has seen a cumulative gain of ₹34,416 over the last five trading sessions.