Gold, silver decline up to 1 pc as US-Iran tensions weigh sentiment
New Delhi, Aug 14
Gold and silver prices traded sharply lower on Friday amid heightened geopolitical uncertainty after US Treasury Secretary Scott Bessent warned of never-before-seen economic measures against Iran.
On the Multi Commodity Exchange (MCX), gold futures (October) declined as much as 0.8 per cent or Rs 1,233 to Rs 1,52,233, hitting an intraday low by 10:22 am.
At the last count, the yellow metal was trading at 1,52,415, down Rs 1,051 or 0.68 per cent. It touched an intraday high of Rs 1,53,200 so far in the session, a decrease of 0.17 per cent or Rs 266 from the previous close.
Similarly, silver futures (September) recorded an intraday low of Rs 2,32,454, decreasing 1.27 per cent or Rs 2,993.
The white metal was trading at Rs 2,32,880, down Rs 2,567 or about 1 per cent. It touched an intraday high of Rs 2,33,982, down 0.62 per cent or Rs 1,465.
Earlier in the day, gold and silver opened at Rs 1,53,200 and Rs 2,33,780, respectively on the MCX.
The selling pressure in precious metals came after reports suggest that Bessent said the US would use a combination of economic isolation and a continued blockade of the Strait of Hormuz.
According to market experts, MCX Gold extends downside momentum, trading near Rs 152,500 after facing rejection from highs near Rs 155,500.
They further noted that immediate resistance is placed at Rs 153,000-Rs 153,500 near open and a decisive move above could push toward Rs 154,000-Rs 154,500.
Immediate support is seen at Rs 152,000-Rs 151,500, followed by stronger support at Rs 151,000, the experts said adding that price continues to hold comfortably above all major EMAs, but MACD indicates slowing bullish momentum and RSI reverses from overbought territory, reflecting possible near-term pressure.
For MCX Silver, the experts stated that immediate support is seen at the Rs 232,000 zone, followed by stronger support at Rs 231,500-Rs 231,000.
Price breaks below the 20-day EMA, with MACD indicating slowing bullish momentum, while RSI eases, supporting the trend-reversal narrative and reflecting near-term pressure. Bias remains cautious, with a break below Rs 232,000 likely to invite further downside.
— IANS
Reader Comments
Indian families buy gold for security, not speculation. This dip is actually good news for my cousin who has her wedding in December. We're planning to buy some jewellery next week if prices stay low. The Strait of Hormuz blockade could push prices higher in the long run though, so we might not wait too long!
I was close to buying gold ETFs last week at Rs 155,000 per 10g. Glad I waited! Now looking at these support levels - if it touches Rs 151,500, I'm in. But I'm a bit worried about this "never-before-seen measures" comment from Bessent. Sounds like things could get worse before they get better. 🙏
These European tensions affect our desi markets way too much. Every time the US sneezes, our MCX catches a cold. But honestly, for daily wage earners, this doesn't change anything. Gold is still unaffordable for many. I wish authorities focus more on food prices and LPG cylinder costs rather than tracking corporate market swings.
Support at Rs 151,500-152,000 looks strong. If the US follows through with sanctions on Iran oil exports, gold will rally past Rs 155,000 in no time. I've been advising my clients to hold their positions. The RSI cooling off from overbought is actually healthy - correction is part of the game when you're playing the long-term commodity cycle. 📈
As someone who's been trading commodities for over a decade, this kind of geopolitical correction
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