Gold and silver experienced notable declines in trading following renewed military strikes by the United States against Iran, heightening geopolitical risks in the Middle East. Gold futures for August on the Multi Commodity Exchange (MCX) opened lower and continued slipping throughout the session, registering a drop below Rs 1,45,000 per 10 grams at one point.
Silver futures also came under pressure, with prices falling more sharply in early trade on MCX. The white metal dropped to intraday lows under Rs 2,29,000 per kilogram, reflecting broad selling sentiment amid escalating regional tensions. Internationally, COMEX gold and silver fell correspondingly as investors responded to intensifying geopolitical concerns.
Market analysts pointed out that both gold and silver are trading below critical exponential moving averages across multiple periods, indicating potential sustained weakness in these metals. They observed rising open interest paired with falling prices in gold contracts, suggesting a build-up of short positions. Silver’s prospects appear similarly fragile, with analysts warning of further declines if support near Rs 2.23 lakh per kilogram fails to hold.
The recent US military action followed reported attacks on three oil tankers near the Strait of Hormuz, a crucial maritime chokepoint. These developments triggered Washington’s decision to revoke licenses linked to Iranian oil exports, escalating volatility in the region. In response, global crude oil prices surged: Brent crude rose sharply above $76 a barrel, while US West Texas Intermediate advanced past $72.
This interplay of growing Middle East tensions and commodity market movements underscores the broad impact geopolitical events can exert on precious metals and energy markets worldwide.