Precious Metals Decline Amid Rising Tensions in West Asia

Mumbai, June 10: Precious metals, including gold and silver, saw a significant decline during Wednesday’s trading session due to escalating tensions in West Asia and uncertainty in global markets.

On the Multi Commodity Exchange of India (MCX), August futures for gold opened at ₹149,926 per 10 grams but fell nearly 2% to reach a day’s low of ₹149,500 per 10 grams. Similarly, July futures for silver opened at ₹234,009 per kilogram and dropped around 2% to a low of ₹233,400 per kilogram.

As of the time of writing (approximately 11:15 AM), gold for August delivery was trading at ₹150,289 per 10 grams, reflecting a decline of 1.41% or ₹2,154. Meanwhile, July delivery silver was priced at ₹235,200 per kilogram, down 1.40% or ₹3,328.

According to data from the Indian Bullion and Jewelers Association (IBJA), the price of 999 purity gold was ₹152,519 per 10 grams on Tuesday, while 999 purity silver was priced at ₹245,938 per kilogram.

It is noteworthy that there has been a considerable drop in gold and silver prices in recent days. Silver on the MCX has fallen ₹2.21 lakh from its all-time high of ₹4,57,328, while gold has decreased by over ₹53,700 from its peak of ₹2,04,375.

Market experts suggest that the immediate resistance level for MCX gold is currently at ₹152,000. If gold maintains strength above this level, a bullish trend could develop, potentially pushing prices to the ₹154,000-₹155,000 range.

Conversely, if prices fall below the ₹149,500-₹149,000 range, selling pressure may increase, pushing gold towards the support zone around ₹148,000.

For MCX silver, the upper range of ₹238,000-₹240,000 is acting as immediate resistance. A strong breakout above this range could lead to a recovery, with prices potentially reaching ₹245,000 and then ₹248,000.

However, if silver drops below the support level of ₹232,000, selling pressure could intensify, causing prices to fall to the ₹228,000-₹225,000 range.