Gold, Silver Slide Up To 2% As West Asia Conflict Lifts Oil Past $110

Precious metals witnessed a notable decline on Tuesday, with both gold and silver coming under pressure amid rising crude oil prices and continued uncertainty linked to the United States–Iran situation.

On the domestic front, gold futures on the Multi Commodity Exchange moved lower during the session. Prices for the June contract dropped to around Rs 1,50,450 per 10 grams at their lowest point, before settling slightly higher but still in the red.

Silver futures also saw sharper losses. The May contract slipped to nearly Rs 2,36,600 per kg during intraday trade, reflecting weaker demand and sustained selling activity.

Market participants noted that both metals struggled to hold gains as volatility increased.

Analysts pointed out that gold is facing resistance near Rs 1,52,000, while a dip below Rs 1,51,000 could trigger further selling. For silver, the Rs 2,40,000 mark remains crucial, with downside risks if prices stay below this level.

In global markets, precious metals mirrored the downward trend. Prices on COMEX showed gold edging lower and silver declining further, indicating subdued sentiment internationally.

Despite the current pullback, both metals have delivered strong gains over the past year. Gold has risen significantly in dollar terms, while silver has seen even sharper appreciation, more than doubling investor returns.

The broader market mood remains influenced by geopolitical developments. Ongoing tensions between Washington and Tehran have kept investors cautious, particularly as negotiations show little sign of a clear resolution.

Disagreements persist over proposals involving the reopening of the Strait of Hormuz and conditions tied to easing restrictions.

Crude oil prices have surged, adding to market unease. Brent crude climbed past $110 per barrel, nearing its yearly highs, while US crude also recorded strong gains.

Rising energy costs have added pressure on commodities, contributing to the decline in gold and silver prices.

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