New Delhi, June 3: Rising tensions between the United States and Iran are affecting global commodity markets. On Wednesday, the domestic futures market, Multi Commodity Exchange (MCX), recorded a decline in gold and silver prices.
Despite this, gold for August delivery opened at ₹1,59,447 per 10 grams, slightly up by 0.06% from its previous close of ₹1,59,346. In contrast, July futures for silver opened at ₹2,66,668 per kilogram, marking a minor decline of 0.01%.
As of around 11:36 AM, gold for the August contract was trading at ₹1,58,956 per 10 grams, down by 0.24% or ₹390. Meanwhile, silver for the July contract fell by 0.49%, or ₹1,307, reaching ₹2,65,400 per kilogram.
Internationally, gold prices have also seen a drop. The intensifying U.S.-Iran conflict has led to a surge in crude oil prices, raising concerns about inflation and the possibility of sustained high interest rates. This has limited investor interest in gold.
Spot gold decreased by 0.2% to $4,476.50 per ounce, while U.S. gold futures for August delivery fell by 0.3%, trading at $4,504.40 per ounce. Spot silver also dropped by 0.5%, reaching $74.73 per ounce.
Experts believe that rising geopolitical tensions in West Asia and the spike in crude oil prices have kept investors cautious.
Tensions in West Asia have escalated again. According to the U.S. military, Iran attempted missile attacks on Bahrain, Kuwait, and other regional sites, which were either thwarted or unsuccessful. Meanwhile, diplomatic talks between Washington and Tehran have shown no significant progress.
Additionally, crude oil prices have surged by over 1%, deepening concerns about global inflation and potential interest rate hikes.
Ponmudi R, CEO of Enrich Money, noted that MCX gold had a strong start and is currently holding above ₹1,59,000, indicating a positive market trend.
He stated that if gold crosses the ₹1,60,000 mark firmly, it could see further gains, potentially reaching ₹1,62,000 to ₹1,63,000 per 10 grams. Conversely, ₹1,59,000 will serve as immediate support. If this level breaks, prices could slide to ₹1,58,400 to ₹1,58,000.
According to experts, MCX silver has managed to stay above ₹2,66,000, but market volatility remains. The ₹2,68,000 level is considered significant resistance for silver. If this level is surpassed, prices could rise to ₹2,69,500 to ₹2,70,000 per kilogram.
However, if silver falls below ₹2,65,000, further weakness could occur, with prices potentially dropping to the ₹2,63,000 to ₹2,61,000 range.
Analysts believe that the direction of gold and silver in the coming days will largely depend on the U.S.-Iran conflict, crude oil prices, and global economic indicators. The demand for safe-haven investments and the state of global tensions may continue to cause fluctuations in precious metals.
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