Gold and silver prices saw a decline on Wednesday due to escalating geopolitical tensions in the Middle East following US military strikes on Iran. On the Multi Commodity Exchange (MCX), gold futures for the August 5 contract opened lower at Rs 1,45,200 per 10 grams. The yellow metal was trading at Rs 1,45,000 per 10 grams, down by 0.27%.
Silver futures (September 4) also experienced selling pressure, dropping as much as 0.83% to reach an intraday low of Rs 2,28,925 per kg. The white metal opened at Rs 2,30,015 and was trading at Rs 2,29,401, down by 0.63%. International markets also reflected the downward trend, with COMEX gold trading lower at $4,139 per ounce and COMEX silver declining to around $61 per ounce.
Market experts observed that gold has been on a four-session losing streak and is currently trading below key moving averages, indicating ongoing weakness. They highlighted that silver is also below significant moving averages, with potential further downside if it falls below the crucial support level of around Rs 2.23 lakh per kg.
The drop in precious metal prices followed fresh US military actions against Iran and the US decision to cancel licences related to Iranian oil exports, leading to increased tensions in the region. This escalation was triggered by US military strikes in response to attacks on three oil tankers in the Strait of Hormuz, heightening geopolitical concerns. Meanwhile, crude oil prices surged, with Brent crude surpassing $76 a barrel and US West Texas Intermediate (WTI) crude climbing above $72 a barrel.
