Gold and silver prices experienced a significant decline on Tuesday as optimism about easing tensions in the West Asia conflict reduced safe-haven demand. On the Multi Commodity Exchange (MCX), gold futures for April 2 fell by about 2% to reach an intra-day low of Rs 1,36,684 per 10 grams. Silver futures for May 5 also dropped by 4.73% to Rs 2,14,500 per kg during the session.
In the global market, COMEX gold was trading at $4,368.76, down 1.6%, while COMEX silver saw a decline of around 4% to $66.56. The decrease in precious metal prices followed the US President’s announcement of a temporary pause on potential strikes targeting Iran’s energy infrastructure, citing positive discussions with Tehran.
Despite the temporary relief in tensions, analysts noted that COMEX gold is trading in the $4,300–$4,380 range with a weak overall trend. Immediate resistance levels are identified at $4,470–$4,500, while a drop below $4,250 could lead to further declines towards $4,100. Similarly, COMEX silver faces pressure below the $68–$70 resistance zone, with potential downside risks towards $64–$61 if support levels are breached.
MCX gold, which opened lower, is struggling to recover within a bearish trend, holding above Rs 1,36,000. Resistance levels are observed at Rs 1,39,000–Rs 1,40,000, while a break below Rs 1,34,000 could extend losses towards Rs 1,30,000. For MCX silver, trading in the Rs 2,15,000–Rs 2,20,000 range, a bearish bias persists unless higher resistance levels are reclaimed.
