US President Donald Trump's recent cessation of the ceasefire between Iran and America has delivered a sharp blow to global and domestic commodity and equity markets.
Exchange traded funds (ETFs) for safe haven assets Gold and Silver slumped up to 3%, reflecting a mass selloff on the Dalal Street and a sudden decline in demand.
ICICI Prudential Gold ETF traded 1.6% lower at Rs 121.01, Kotak Gold Exchange traded fund was down 1.44% to Rs 118, and DSP Gold ETF slid 1.53% to Rs 137.27.
Funds for the Devil's metal took a harder hit with Motilal Oswal Silver ETF sinking 3.19% to Rs 216.93, Mirae Asset Silver ETF down over 3% to Rs 213.48, and DSP Silver ETF falling 3.17% to Rs 211.17.
Trump's remarks have sent jitters through capital, equity, commodity and financial markets across the globle. Crude oil prices, which had fallen below $70 per barrel in the last few weeks, surged once again.
As of 3:08 p.m. IST, global benchmark brent crude traded 6.5% higher at $78.9 per barrel, while West Texas Intermediate was up 6.49% to $75.01 per barrel.
ALSO READ: Gold Falls By Rs 2,000, Silver Slumps Rs 7,000 On MCX After Trump Says Iran Ceasefire Is Over
Safe Havens Unsafe?
The yellow metal rate dropped sharply on Multi Commodity Exchange of India (MCX) during trading hours today, July 8 after US President Donald Trump claimed that the ceasefire with Iran with over, heightening geopolitcal tensions.
At 2:27 pm on Wednesday, the MCX gold August futures contract fell 1.5% or Rs 2,240 to Rs 1,43,037 per 10 grams, while the MCX silver September futures dipped 3.17% or Rs 7,307 to Rs 2,23, 550 per kg.
ALSO READ: What Should Investors Do With Their Investments In Gold ETFs?
What Did Trump Say?
The republican President called Tehran "dirty players" and declared the ceasefire between the two countries effectively over, while speaking in Ankara, where he is attending the NATO summit.
He addedd, "We attacked very powerfully last night against Iran." He said the strikes were retaliation for Iranian attacks on commercial vessels, adding: "Iran shot rockets at ships, that's why US hit back."
Asked directly whether the ceasefire between Washington and Tehran was over, Trump replied: "I think it's over," adding, "As far as I'm concerned, it's over."
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