Gold, silver trade lower as US Hormuz blockade rattles markets

MUMBAI — Gold and silver prices on Monday traded under pressure, with the precious metals witnessing a decline of up to 2 per cent after the US announced a blockade of the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), gold futures (June 5 contract) declined as much as 0.78 per cent or INR 1,195 to hit an intraday low of INR 1,51,457 per 10 gram. Meanwhile, silver futures dropped by INR 6,084 or 2.5 per cent to INR 2,37,190 per kg, hitting an intraday low as of 10:14 am.

The yellow metal touched an intraday high of INR 1,51,999, up INR 653 or 0.42 per cent, from the previous session’s close.

The white metal logged an intraday high of INR 2,39,068, down INR 4,206 or 1.72 per cent.

On the global front, precious metals also traded lower. COMEX gold was at $4,626, down 3.37 per cent or $161, while spot gold traded at $4,718.38, lower by $30 or 0.61 per cent.

Also read: Crude oil prices surge nearly 10 pc to cross $100 as US moves to block Hormuz

COMEX silver fell 5.14 per cent or $3.9 to $72.54, while spot silver traded at $74.43, down $1.44 or 1.90 per cent.

Analysts said COMEX gold is currently trading in the $4,700–$4,750 range with limited upside momentum, and a break below $4,650 could trigger further downside toward the $4,600–$4,570 levels. On the upside, resistance is seen around $4,750–$4,770.

MCX gold is hovering in the INR 1,51,500–INR 1,52,000 range with subdued buying interest. A sustained move above INR 1,54,000 may revive momentum, while a break below INR 1,51,000 could extend weakness toward lower levels.

“In silver, COMEX prices remain below the $75 mark, indicating a weak undertone, with further downside likely if prices slip below $72. MCX silver is trading near INR 2,38,000, with resistance around INR 2,40,000 and support seen at INR 2,37,000,” they added.