Gold and silver prices saw a significant decline, dropping by up to 2% on Tuesday. This fall was attributed to the ongoing tensions between the US and Iran, coupled with a rise in crude oil prices surpassing the $110 mark once again.
On the Multi Commodity Exchange (MCX), gold futures for June 5 experienced selling pressure, with the yellow metal hitting an intraday low of Rs 1,50,450 per 10 grams, down 0.83%. Silver futures for May 5 also faced pressure, sliding to an intraday low of Rs 2,36,600 per kg, marking a 2.16% decline.
Experts suggest a cautious outlook for precious metals due to volatility and geopolitical uncertainties. They noted that gold prices are near resistance levels, with Rs 1,52,000 as a key hurdle, while silver prices are hovering around Rs 2,40,000, indicating weak buying interest.
In the international market, both gold and silver prices witnessed a decline. Gold on COMEX dropped by 0.27% to $1,680 per ounce, while silver fell by 0.73% to $74.48 per ounce. Notably, gold has yielded over 40% returns in dollar terms over the past year, while silver has doubled investors’ money with a 125% increase.
The tensions between the US and Iran persist, with peace talks showing significant volatility. The US has rejected Iran’s proposal, leading to continued uncertainty in negotiations. Additionally, crude oil prices surged towards their 52-week highs, with Brent crude reaching $111.31 per barrel and US West Texas Intermediate (WTI) crude rising to $98.81.
