Gold, silver decline as easing geopolitical tensions dampen safe-haven demand

Mumbai, June 17 (IANS) Gold and silver prices traded lower on Wednesday as easing geopolitical tensions weighed on safe-haven demand, with investors and traders awaiting final confirmation of the US-Iran deal expected to be signed later this week.

On the Multi Commodity Exchange (MCX), gold futures (August) declined as much as 0.51 per cent or Rs 790 to hit an intraday low of Rs 1,52,301 as of around 11:30 am.

The yellow metal was trading at Rs 1,52,501, down 0.39 per cent or Rs 590. It touched an intraday high of Rs 1,53,179, up 0.05 per cent or Rs 88 from the previous close of Rs 1,53,091.

Meanwhile, silver futures (July) were trading at Rs 2,49,910, down Rs 195 or 0.08 per cent.

The white metal touched an intraday low of Rs 2,48,777, declining 0.53 per cent or Rs 1,328 during the session so far. It recorded an intraday high of Rs 2,51,498, up 0.55 per cent or Rs 1,393 from the previous close.

Earlier in the day, gold and silver opened at Rs 1,52,800 and Rs 2,50,557, respectively, on the commodity exchange.

In international markets, COMEX silver was trading at $70.40, up 0.55 per cent, while COMEX gold was down 0.13 per cent at $4,348.70 per ounce.

According to market experts, MCX gold is currently hovering near the key support zone of Rs 1,52,000-Rs 1,52,500 amid ongoing volatility. A sustained move above the Rs 1,53,500-Rs 1,54,000 range could help stabilise prices and pave the way for a recovery towards Rs 1,55,000-Rs 1,55,500. However, a break below Rs 1,52,000 may trigger fresh selling pressure and drag the precious metal towards Rs 1,51,000 and eventually Rs 1,50,000.

Experts said MCX silver is trading in the Rs 2,49,000-Rs 2,50,000 range and remains relatively resilient despite market volatility. They noted that a sustained move above the Rs 2,51,000-Rs 2,52,000 resistance zone could strengthen momentum and push prices towards Rs 2,54,000-Rs 2,55,000. On the downside, a fall below Rs 2,48,000 could increase selling pressure and pull silver towards the Rs 2,46,500-Rs 2,45,500 support region.

Analysts attributed the weakness in precious metals partly to easing geopolitical concerns, which also weighed on crude oil prices.

Meanwhile, crude oil prices declined sharply, with Brent crude trading below $79 per barrel, while US West Texas Intermediate (WTI) crude slipped nearly 1 per cent to around $75 per barrel.

–IANS

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