Gold and silver prices faced downward pressure on Monday, with both precious metals experiencing declines of up to 2% following the US announcement of a blockade on the Strait of Hormuz. On the Multi Commodity Exchange (MCX), gold futures for June fell by 0.78% to reach an intraday low of Rs 1,51,457 per 10 grams, while silver futures dropped by 2.5% to Rs 2,37,190 per kg.
The price of gold touched an intraday high of Rs 1,51,999, marking a 0.42% increase from the previous session’s close. Conversely, silver reached an intraday high of Rs 2,39,068, showing a decline of 1.72%.
Internationally, precious metals also saw a decrease in value. COMEX gold was at $4,626, down by 3.37%, while spot gold traded at $4,718.38, a decrease of 0.61%. COMEX silver fell by 5.14% to $72.54, with spot silver trading at $74.43, down by 1.90%.
Analysts noted that COMEX gold is currently trading within the $4,700–$4,750 range, with limited upward momentum. A drop below $4,650 could lead to further declines towards $4,600–$4,570, while resistance is anticipated around $4,750–$4,770.
MCX gold is ranging between Rs 1,51,500–Rs 1,52,000 with subdued buying interest. A sustained move above Rs 1,54,000 might reignite momentum, whereas a dip below Rs 1,51,000 could extend weakness to lower levels. In the silver market, COMEX prices are below $75, suggesting a weak trend, with potential further downside if prices fall below $72. MCX silver is trading near Rs 2,38,000, with resistance at Rs 2,40,000 and support at Rs 2,37,000.
Traders and investors’ sentiment was impacted by increased tensions in West Asia following the lack of progress in peace talks between the US and Iran. President Donald Trump announced a blockade of the Strait of Hormuz, leading to a 2% decline in domestic equity benchmarks Sensex and Nifty, while major Asian indices also dropped by up to 1%.
Additionally, the Indian rupee started 55 paise lower against the US dollar on Monday, opening the session at 93.28.
