Gold and silver prices saw a decline on Friday, with both precious metals dropping by almost 1% due to a stronger US dollar and rising geopolitical tensions in the Middle East. On the Multi Commodity Exchange (MCX), gold futures for August delivery started at Rs 1,42,392 per 10 grams, marking a 0.30% decrease from the previous close. The yellow metal fell by 0.75% to an intraday low of Rs 1,41,742 per 10 grams.
Similarly, silver futures for September delivery on MCX opened lower at Rs 2,18,280 per kg, down by 0.49% from the previous close. The white metal also experienced a drop of nearly 1% to reach an intraday low of Rs 2,17,325 per kg. In the global market, COMEX gold was down by 0.48% at $4,030 an ounce, while silver slipped by 0.41% to $57.80 an ounce.
Experts in the commodity market linked the decline in gold and silver prices to the strengthening US dollar index, which surpassed the 101 mark amidst escalating tensions between the US and Iran. Analysts noted that MCX gold opened weakly below Rs 1,42,000 and continued to trade around Rs 1,41,500 with a bearish bias. Immediate support is identified at Rs 1,41,500, with a potential further decline towards the Rs 1,41,000-Rs 1,40,700 range.
For silver, MCX futures also opened lower and maintained a weak tone. Immediate support levels are placed in the Rs 2,16,700-Rs 2,16,000 zone, followed by Rs 2,14,500-Rs 2,14,000. Resistance levels are noted at Rs 2,19,000-Rs 2,20,000, with the next hurdle at Rs 2,22,000-Rs 2,23,000. Analysts highlighted that the short-term outlook for silver remains negative unless prices surpass the immediate resistance zone.
The US-Iran conflict has escalated recently, with reports of Iran targeting US military sites in the Middle East and the US conducting strikes on Iranian military facilities.
