Gold and silver prices traded lower on Tuesday, declining up to nearly 2 per cent after the US military launched fresh strikes on southern Iran
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MUMBAI — Gold and silver prices traded lower on Tuesday, declining up to nearly 2 per cent after the US military launched fresh strikes on southern Iran.
On the Multi Commodity Exchange (MCX), gold futures (June 5) were trading 0.61 per cent or Rs 971 lower at Rs 1,58,110 at around 10:25 am.
The yellow metal touched an intraday low of Rs 1,58,000, down 0.67 per cent or over Rs 1,000 from the previous close of Rs 1,59,081. It also recorded an intraday high of Rs 1,58,789, down 0.18 per cent or Rs 292.
On the other hand, silver futures (July 3) also witnessed selling pressure, slipping nearly 2 per cent or over Rs 5,000 to hit an intraday low of Rs 2,71,972 so far.
At the last count, the white metal was trading at Rs 2,72,008, down 1.7 per cent or Rs 4,708. It recorded an intraday high of Rs 2,74,727, still lower by 0.71 per cent or Rs 1,989.
On the commodity exchange, silver and gold earlier opened at Rs 2,74,727 and Rs 1,58,789, respectively.
The selling pressure in the precious metals came after the US military launched fresh strikes in southern Iran and targeted missile sites and boats allegedly attempting to lay mines. Washington described it as a ‘self-defence’ operation.
The attacks came even as senior Iranian negotiators were in Doha for talks with Qatar’s prime minister on a possible agreement to end the three-month-long conflict involving the US and Israel.
According to commodity market experts, MCX gold opened with a mild gap down and continued to trade above the Rs 1,58,000 mark, indicating a cautious undertone in price action.
"Immediate resistance is placed in the Rs 1,59,000-Rs 1,59,500 range, while a sustained move above this zone could push prices towards the Rs 1,60,000-Rs 1,60,500 levels," they said, adding that on the downside, a break below Rs 1,58,000-Rs 1,57,500 may extend weakness towards the Rs 1,56,000-Rs 1,55,000 zone.
For silver, they said that MCX silver was holding above the Rs 2,73,000 mark, with resistance seen near Rs 2,75,000. A sustained breakout above the level could support recovery towards Rs 2,77,000-Rs 2,78,000, while support is placed around Rs 2,72,000.
"Safe-haven demand and geopolitical developments continue to influence the direction of precious metals," the experts noted.
Meanwhile, global crude oil prices rebounded, with international benchmark Brent crude rising 1 per cent to $98 a barrel, while US West Texas Intermediate (WTI) crude gained more than 3 per cent to nearly $94.