Gold and silver prices started the week on a weak note, and the Fresh geopolitical tensions, especially after the breakdown of US-Iran talks, have unsettled global sentiment, pushing investors into a cautious mode.
At the time of writing, MCX gold was down by Rs 1,239, trading at Rs 1,51,413 per 10 grams. Silver saw a sharper fall, dropping Rs 5,986 to trade at Rs 2,37,288 per kg.
The decline comes as rising tensions in the Middle East pushed crude oil prices higher, which in turn raised inflation concerns. This has reduced hopes of interest rate cuts by the US Federal Reserve, adding pressure on precious metals.
According to Ponmudi R, CEO of Enrich Money, gold is currently moving in a narrow range with limited buying support.
“MCX Gold opened with a mild gap down and is trading within Rs 1,51,500–Rs 1,52,000 range with limited buying interest at lower levels, though momentum remains gradual and unconfirmed,” he said.
He added that a strong move above Rs 1,54,000 could improve sentiment and push prices towards Rs 1,55,000. However, if prices slip below Rs 1,51,000, further downside towards Rs 1,50,000 and even Rs 1,48,000 cannot be ruled out.
Silver, too, is showing signs of weakness despite some support from industrial demand.
“MCX Silver opened with a gap down and is currently hovering above Rs 2,38,000 resistance is placed at Rs 2,40,000, and any recovery toward this level is likely to face selling pressure,” Ponmudi said.
He warned that if silver breaks below Rs 2,37,000, prices could fall further towards the Rs 2,35,000–Rs 2,33,000 range.
The bigger trigger behind this cautious mood is the sharp rise in crude oil prices, which have crossed the $104 per barrel mark. This spike followed the collapse of US-Iran negotiations, raising fears of supply disruptions.
Higher oil prices tend to increase inflation globally, which often leads central banks to delay rate cuts. This reduces the appeal of gold and silver, which do not offer fixed returns like interest-bearing assets.
The rising crude prices are also expected to put pressure on the Indian rupee, which had shown some stability in recent weeks. Along with shifting foreign investment flows, this is adding to overall market volatility.
For now, experts believe the outlook remains cautious. The next move in gold and silver will largely depend on how geopolitical tensions unfold, where crude oil prices head next, and how global investors react in the coming days.