Gold, silver trade lower amid fresh US strikes on Iran

Mumbai, July 8 (IANS) Gold and silver prices traded lower on Wednesday amid rising geopolitical tensions in the Middle East after the US military launched fresh strikes on Iran.

On the Multi Commodity Exchange (MCX), gold futures for the August 5 contract opened at Rs 1,45,200 per 10 grams, down Rs 192 from the previous close of Rs 1,45,392.

At around 10:35 am, the yellow metal was trading at Rs 1,45,000 per 10 grams, down Rs 392 or 0.27 per cent.

During the session so far, MCX gold touched an intraday low of Rs 1,44,750, down Rs 642 or 0.44 per cent and a high of Rs 1,45,356.

Silver futures (September 4) too witnessed selling pressure in early trade, falling as much as 0.83 per cent or Rs 1,932 to hit an intraday low of Rs 2,28,925 per kg.

The white metal opened at Rs 2,30,015, down Rs 842 from previous close of Rs 2,30,857. At the last count, it was trading at Rs 2,29,401, lower by Rs 1,456 or 0.63 per cent.

Selling pressure was also visible in international markets. COMEX gold was trading 0.43 per cent lower at $4,139 per ounce, while COMEX silver declined 0.54 per cent to around $61 per ounce.

According to the commodity market experts, gold has extended its losses for a fourth consecutive session and is trading below its key 20-, 50- and 100-period exponential moving averages (EMAs) on the four-hour chart, signalling continued weakness.

Rising open interest alongside falling prices suggests fresh short build-up in the current contract, they said.

They further noted that silver is also trading below its key 50-, 100- and 200-period EMAs, with analysts expecting further downside if it slips below the crucial support level of around Rs 2.23 lakh per kg.

The decline in precious metals followed fresh US military strikes on Iran and Washington’s decision to revoke licences related to Iranian oil exports, escalating tensions in the region.

According to the US military, the latest strikes were carried out after three oil tankers transiting the Strait of Hormuz were attacked, further heightening geopolitical concerns.

Meanwhile, crude oil prices extended gains. International benchmark Brent crude rose more than 3 per cent to trade above $76 a barrel, while US West Texas Intermediate (WTI) crude climbed over 3 per cent to above $72 a barrel.

–IANS

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