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Prices of metals declined on Monday, with both gold and silver coming under selling pressure following rising geopolitical uncertainty linked to developments in the Strait of Hormuz.
On the domestic front, gold futures on the Multi Commodity Exchange fell below Rs 1.52 lakh per 10 grams during early trade, while silver dropped sharply by over 2 per cent, slipping near Rs 2.37 lakh per kilogram. Both metals saw brief recoveries during the session but remained largely weak.
In international markets, gold prices also moved lower, with COMEX gold trading below $4,700 and spot prices easing slightly. Silver showed a steeper decline globally, with futures falling over 5 per cent and spot prices dipping below the $75 mark.
Market participants attributed the downturn to cautious investor sentiment after tensions escalated between the United States and Iran, following stalled negotiations and the announcement of a maritime blockade by US President Donald Trump.
Analysts noted that gold is currently trading within a narrow band, indicating limited buying interest. A further decline below key support levels could lead to additional weakness, while a sustained rise above resistance zones may revive momentum. Silver, meanwhile, continues to show a softer trend, with downside risks if prices fall further.
The broader financial market also reflected the cautious mood. Domestic equity indices saw notable losses in early trade, and the Indian rupee weakened against the US dollar, opening lower by more than 50 paise.
Experts said volatility is likely to persist across asset classes, as investors closely track geopolitical developments and their potential impact on global markets.
Also Read: Crude Oil Prices Jump Nearly 10% On Strait Of Hormuz Tensions
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