Gold, silver decline as easing geopolitical tensions dampen safe-haven demand
Mumbai, June 17
Gold and silver prices traded lower on Wednesday as easing geopolitical tensions weighed on safe-haven demand, with investors and traders awaiting final confirmation of the US-Iran deal expected to be signed later this week.
On the Multi Commodity Exchange (MCX), gold futures (August) declined as much as 0.51 per cent or Rs 790 to hit an intraday low of Rs 1,52,301 as of around 11:30 am.
The yellow metal was trading at Rs 1,52,501, down 0.39 per cent or Rs 590. It touched an intraday high of Rs 1,53,179, up 0.05 per cent or Rs 88 from the previous close of Rs 1,53,091.
Meanwhile, silver futures (July) were trading at Rs 2,49,910, down Rs 195 or 0.08 per cent.
The white metal touched an intraday low of Rs 2,48,777, declining 0.53 per cent or Rs 1,328 during the session so far. It recorded an intraday high of Rs 2,51,498, up 0.55 per cent or Rs 1,393 from the previous close.
Earlier in the day, gold and silver opened at Rs 1,52,800 and Rs 2,50,557, respectively, on the commodity exchange.
In international markets, COMEX silver was trading at $70.40, up 0.55 per cent, while COMEX gold was down 0.13 per cent at $4,348.70 per ounce.
According to market experts, MCX gold is currently hovering near the key support zone of Rs 1,52,000-Rs 1,52,500 amid ongoing volatility. A sustained move above the Rs 1,53,500-Rs 1,54,000 range could help stabilise prices and pave the way for a recovery towards Rs 1,55,000-Rs 1,55,500. However, a break below Rs 1,52,000 may trigger fresh selling pressure and drag the precious metal towards Rs 1,51,000 and eventually Rs 1,50,000.
Experts said MCX silver is trading in the Rs 2,49,000-Rs 2,50,000 range and remains relatively resilient despite market volatility. They noted that a sustained move above the Rs 2,51,000-Rs 2,52,000 resistance zone could strengthen momentum and push prices towards Rs 2,54,000-Rs 2,55,000. On the downside, a fall below Rs 2,48,000 could increase selling pressure and pull silver towards the Rs 2,46,500-Rs 2,45,500 support region.
Analysts attributed the weakness in precious metals partly to easing geopolitical concerns, which also weighed on crude oil prices.
Meanwhile, crude oil prices declined sharply, with Brent crude trading below $79 per barrel, while US West Texas Intermediate (WTI) crude slipped nearly 1 per cent to around $75 per barrel.
— IANS
Reader Comments
My mother always said silver is for the common man, gold is for display. She's probably buying more silver today at this dip. Good for her! We're just watching from the sidelines. 📉
This is exactly why I prefer real estate. Gold is too volatile, and the government keeps changing import duties. One day it's up, next day it's down. My uncle lost ₹2 lakh in gold futures last Diwali. Not touching this with a barge pole.
Good news for jewellery buyers planning weddings this year! My son's wedding is in December and I've been postponing the jewellery purchase hoping for a dip. This small drop might not be enough, but I'll take whatever I can get. 🙏
I don't understand why people get so excited about daily fluctuations. Gold is a long-term hedge against inflation. These Rs 500-1000 moves are negligible compared to what we've seen over decades. My grandfather bought at ₹800 per 10 grams in 1970. Think about that. 🏆
The support at ₹1,52,000 is crucial now. If it breaks below that, we might see a sharp correction. But honestly, with global uncertainties still lingering, this could just be a temporary pause. I'm holding my positions for now.
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