Mumbai, June 17: A reduction in geopolitical tensions has weakened the demand for safe-haven investments, resulting in a decline in gold and silver prices. Investors and traders are awaiting the final confirmation of an agreement between the United States and Iran later this week.
On the Multi Commodity Exchange (MCX), the August delivery gold futures fell by 0.51 percent, or ₹790, reaching a low of ₹1,52,301 during the day’s trading. As of the time of writing, the yellow metal was trading at ₹1,52,501 per 10 grams, down by ₹590 or 0.39 percent. Earlier, it had peaked at ₹1,53,179, which was ₹88 or 0.05 percent higher than the previous closing price of ₹1,53,091.
Meanwhile, silver for July delivery was trading at ₹2,49,910, reflecting a decline of ₹195 or 0.08 percent. The white metal recorded a low of ₹2,48,777 during the day, down by ₹1,328 or 0.53 percent, while its highest point was ₹2,51,498, which was ₹1,393 or 0.55 percent above the previous closing price.
At the start of the day, gold opened at ₹1,52,800 and silver at ₹2,50,557 on the commodity exchange.
In international markets, COMEX silver was trading up by 0.55 percent at $70.40, while COMEX gold saw a slight decline of 0.13 percent, trading at $4,348.70 per ounce.
Market experts indicate that MCX gold is currently trading around the crucial support level of ₹1,52,000 to ₹1,52,500, with volatility persisting in the market. If prices remain consistently above ₹1,53,500 to ₹1,54,000, stability may return, potentially pushing gold to ₹1,55,000 to ₹1,55,500. Conversely, a dip below ₹1,52,000 could trigger fresh selling, leading gold to slide to ₹1,51,000 and then ₹1,50,000.
Experts also noted that MCX silver is trading within the range of ₹2,49,000 to ₹2,50,000 and remains relatively strong despite market fluctuations. They believe that if silver surpasses the resistance level of ₹2,51,000 to ₹2,52,000 and maintains its position, it could strengthen further, with prices potentially reaching ₹2,54,000 to ₹2,55,000. On the other hand, a drop below ₹2,48,000 could increase selling pressure, pushing prices down to the support zone of ₹2,46,500 to ₹2,45,500.
Analysts attribute the weakness in precious metals primarily to the easing of geopolitical concerns, which has also impacted crude oil prices.
In the meantime, crude oil prices have also seen a significant decline. Brent crude was trading below $79 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped nearly 1 percent, hovering around $75 per barrel.
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