Gold Prices Dip to ₹1.45 Lakh per 10 Grams as Silver Retreats Amid Heightening US-Iran Tensions
Gold and silver prices in India opened lower on the Multi Commodity Exchange (MCX) Wednesday, reflecting a retreat in global bullion prices. MCX gold for August futures dropped by 0.13%, opening at ₹145,200 per 10 grams, down from the previous close of ₹145,392. Similarly, MCX silver for September futures fell 0.36%, starting at ₹230,015 per kg compared to ₹230,857 previously. Global markets saw volatile gold prices as concerns regarding inflation and interest rate hikes grew, exacerbated by recent US military actions against Iran that also impacted crude oil prices and the dollar.
The decline in prices can be attributed to a combination of geopolitical tensions and market sentiment. The US military’s strikes on Iran have heightened fears about oil supply disruptions, driving up crude prices and bolstering the dollar. These developments have prompted traders to reassess inflation expectations and adjust their outlook for the Federal Reserve’s monetary policy. Market speculation has surged, with the likelihood of a rate hike in September increasing to over 63%, up from 57% earlier this week. High interest rates typically exert downward pressure on non-yielding assets such as gold, creating a bearish environment for precious metals.
In the near term, the outlook for MCX gold and silver remains bearish, although potential for short-covering rallies exists. Key resistance for MCX gold is noted at ₹146,000 per 10 grams, while support is identified at ₹144,000. Jigar Trivedi, a senior analyst, suggests the possibility of a technical pullback despite the broader trend being under pressure. For silver, the immediate resistance level is pegged at ₹232,500, with support at ₹228,000. Both metals are currently trading below their key moving averages, suggesting persistent selling pressure. Traders should remain cautious, watching for technical indicators and geopolitical developments that could influence market dynamics.
Source: Market Source
(Expert Note: This report was independently prepared by the Wealthova Commodities team.)