Gold, Silver Extend Losses As Middle East Tensions Rattle Bullion Markets

On the Multi Commodity Exchange (MCX), gold futures for the August 5 contract began trading at ₹1,45,200 per 10 grams, registering a decline of ₹192 from the previous settlement of ₹1,45,392.

By 10:35 AM, the contract had slipped further to ₹1,45,000 per 10 grams, representing a loss of ₹392 or 0.27 per cent.

During the day’s trade, gold dropped to an intraday low of ₹1,44,750 before trimming some of its losses. Silver prices also weakened in early trading, with the September 4 futures contract opening at ₹2,30,015 per kg, compared with its previous close of ₹2,30,857.

The contract later declined to an intraday low of ₹2,28,925 per kg, reflecting a fall of 0.83 per cent.

At the latest update, silver changed hands at ₹2,29,401 per kg, down ₹1,456 or 0.63 per cent.

International bullion markets also moved lower, with COMEX gold falling 0.43 per cent to $4,139 per ounce and COMEX silver easing 0.54 per cent to nearly $61 per ounce.

Market Outlook

Market experts observed that gold has now recorded four straight sessions of declines and continues to trade below its key 20-, 50-, and 100-period exponential moving averages (EMAs) on the four-hour chart.

Analysts added that silver remains below its major 50-, 100-, and 200-period EMAs, increasing the possibility of additional losses if prices break below the important support level of around ₹2.23 lakh per kg.

The latest decline in bullion followed fresh US military strikes on Iran and Washington’s decision to withdraw licences associated with Iranian oil exports, further escalating tensions in the region.

According to the US military, the operation came after three oil tankers passing through the Strait of Hormuz were attacked.

The developments also pushed energy prices higher, with Brent crude climbing above $76 per barrel and US West Texas Intermediate (WTI) crude rising beyond $72 per barrel.

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