Gold, silver trade lower as investors track global tensions
Mumbai, May 21
Gold and silver prices traded lower on Thursday, while investors closely monitored safe-haven demand and ongoing geopolitical uncertainties.
On the Multi Commodity Exchange (MCX), gold futures (June 5) fell as much as 0.42 per cent or Rs 687 to hit an intraday low of Rs 1,59,319 at around 12 pm.
The yellow metal was trading at Rs 1,59,400, down 0.38 per cent or Rs 606. It touched an intraday high of Rs 1,59,992.
Silver futures (July 3) declined 1.4 per cent or Rs 3,864 to Rs 2,70,401, its intraday low so far.
The white metal was trading at Rs 2,70,810, down 1.26 per cent or Rs 3,455. During the session, it touched an intraday high of Rs 2,73,196.
Earlier in the day, gold and silver opened on the commodity exchange at Rs 1,59,900 and Rs 2,72,275, respectively.
In the international market, precious metals were also trading lower. COMEX gold traded 0.21 per cent lower at $4,525.80 per ounce, while COMEX silver declined 1.06 per cent to $75.37 per ounce.
Analysts said MCX silver opened sharply lower and continued to trade cautiously above the Rs 2,72,000 level.
According to market experts, the Rs 2,75,000-Rs 2,76,000 range remains an immediate resistance zone, and a sustained move above these levels could support a recovery towards Rs 2,78,000-Rs 2,80,000.
On the downside, they noted that a breach below Rs 2,71,000 may pull silver prices towards the Rs 2,68,000-Rs 2,67,000 range.
Experts added that the near-term trend in silver prices will largely depend on safe-haven demand and developments surrounding global geopolitical tensions.
For gold, they said MCX gold opened with a mild gap lower and continued to hold above the Rs 1,59,500 level during the session, adding that the near-term outlook for gold remains cautious, with price direction likely to depend on global risk sentiment and geopolitical developments.
Meanwhile, international benchmark Brent crude rose 1.55 per cent to $106.65 per barrel, while US WTI crude climbed nearly 2 per cent to $100.11 per barrel.
— IANS
Reader Comments
Honestly, with all the geopolitical tensions and rising crude prices, this dip doesn't surprise me. The experts are right to be cautious. I'm sitting tight and not selling my gold holdings yet. Might even buy more if it dips below Rs 1,58,000. Long-term, it's always a safe bet in India! 🇮🇳
I'm a small investor and I feel the pain. Silver dropped 1.4% today—that's a lot for a day. But then I think: India has always valued these metals. Our parents bought gold at Rs 5,000 per 10g and look now. Short-term tension, long-term wealth. Just my two paise. 😅
I think the government should think about reducing import duties on gold to stabilize prices. It's already expensive for the common man due to taxes, and now global tensions are making it worse. Why does everything have to depend on foreign factors? 😐
Watching crude oil jump 1.5% while precious metals dip is interesting. I guess people are betting on economic growth rather than safe havens? But with tensions in Europe and West Asia, not sure how long that lasts. For now, I'm avoiding buying gold—will wait for a clearer trend.
It's interesting to see how global tensions affect local markets like MCX. I've been tracking gold from both sides—international and Indian—and the Rupee's movement also plays a big role. For now, I expect volatility but not a crash. Silver might recover faster if industrial demand picks up.
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