Gold and silver traded sharply lower on Tuesday, declining by up to 2 per cent amid ongoing tensions between the US and Iran and a rise in crude oil prices, which breached the $110 mark again
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MUMBAI — Gold and silver traded sharply lower on Tuesday, declining by up to 2 per cent amid ongoing tensions between the US and Iran and a rise in crude oil prices, which breached the $110 mark again.
On the Multi Commodity Exchange (MCX), gold futures (June 5) witnessed selling pressure. The yellow metal fell to an intraday low of Rs 1,50,450 per 10 grams, down 0.83 per cent or Rs 1,271, while it touched a high of Rs 1,51,802, up 0.05 per cent or Rs 81.
At the last count, gold was trading at Rs 1,50,600, down Rs 1,121 or 0.74 per cent.
Meanwhile, silver futures (May 5) also remained under pressure during the session. The white metal slipped to an intraday low of Rs 2,36,600 per kg, a decline of 2.16 per cent or Rs 5,224, while the high was recorded at Rs 2,41,250, down 0.23 per cent or Rs 574.
At the last count, silver was trading at Rs 2,37,600, down Rs 4,224 or 1.75 per cent.
A commodity market expert said the near-term outlook for precious metals remains cautious amid volatility and geopolitical uncertainty.
"MCX Gold is witnessing selling pressure near resistance levels, with Rs 1,52,000 acting as a key hurdle. A sustained move above this level could push prices higher, while a break below Rs 1,51,000 may lead to extended profit booking,” the expert said.
“For MCX Silver, prices are hovering around Rs 2,40,000, indicating weak buying interest. A sustained move above Rs 2,42,000–Rs 2,44,000 could support recovery, while a break below Rs 2,40,000 may accelerate the downside,” the expert added.
In the international market, gold and silver prices also declined. On COMEX, gold was down 0.27 per cent at $4,680 per ounce, while silver fell 0.73 per cent to $74.48 per ounce.
Moreover, gold has delivered returns of over 40 per cent in dollar terms over the past one year, while silver has doubled investors' money, with an increase of 125 per cent.
Tensions between the US and Iran have remained elevated, with peace talks witnessing significant volatility.
The US has rejected Iran’s proposal, which included reopening the Strait of Hormuz and holding talks on its nuclear programme after the lifting of US maritime restrictions.
However, the US is understood to be seeking a comprehensive resolution to both issues simultaneously, indicating continued uncertainty in negotiations.
In addition, crude oil prices surged towards their 52-week highs on Tuesday, with Brent crude touching an intraday high of $111.31 per barrel, up about 3 per cent from the previous close. Similarly, US West Texas Intermediate (WTI) crude jumped as much as 2.53 per cent to $98.81.