New Delhi, July 12 -- Gold and silver prices today, 12 July: The price of the yellow metal in India's retail market plunged this week as compared with last week when it stood at Rs.147,850. The fall in bullion comes as investors assessed renewed fighting between the US and Iran. Washington recently launched third round of strikes this week against Tehran after Iran fired "warning shots" at a vessel transiting the Strait of Hormuz.

The escalation in hostilities between the adversaries raises the prospect of the US Federal Reserve interest rate hikes as higher rates are a headwind for bullion, which doesn't pay interest. Since gold prices do not change on weekends because the global and domestic commodity markets are closed, local jewelers...