Renewed tensions between the US and Iran have sparked widespread anxiety across global markets. Following the latest conflict in West Asia, stock markets are facing significant pressure, and this volatility has extended to precious metals. On Monday, as the trading week began, both gold and silver witnessed a substantial decline in their prices on the MCX. By 11:48 AM, gold prices were trading with a loss of 0.95 percent, while silver saw a steeper drop of 1.90 percent.
Current Gold Trading Trends on MCX
At approximately 11:48 AM on Monday, gold for delivery on August 5 was trading at 142,120 rupees per 10 grams, reflecting a decline of 1358 rupees or 0.95 percent. The metal opened the day lower at 142,633 rupees per 10 grams, down by 845 rupees from its previous close of 143,478 rupees per 10 grams last Friday. Throughout the session, the price fluctuated, reaching an intraday high of 142,669 rupees per 10 grams and an intraday low of 141,557 rupees per 10 grams.
Sharp Decline in Silver Prices
Silver also faced significant selling pressure today. The price for September 4 delivery dropped by 4228 rupees, or 1.90 percent, to trade at 218,436 rupees per kilogram. Silver started the day at 218,648 rupees per kilogram, a decline of 4016 rupees from its closing price of 222,664 rupees per kilogram recorded last Friday. During the day, the metal hit an intraday high of 219,806 rupees per kilogram and touched a low of 217,277 rupees per kilogram.
Expert Outlook on Precious Metals
Market analysts had previously anticipated that the downward trend for precious metals might continue this week. Pranav Mer, Senior Vice President of Commodity and Currency Research at JM Financial Services Ltd, noted that global inflation data is currently shaping market expectations regarding interest rates. According to Mer, gold and silver are currently undergoing a correction phase. Investors are now closely monitoring the US-Iran conflict. If the situation escalates, it could drive crude oil prices higher and strengthen alternative safe-haven assets like the US Dollar and US bond yields.
