Gold and silver futures declined sharply on Friday as escalating tensions between the United States and Iran weighed on market sentiment.
On the Multi Commodity Exchange, gold futures for October delivery fell as much as 0.8 per cent, or Rs 1,233, to an intraday low of Rs 1,52,233 by 10.22 am.
The precious metal was later trading at Rs 1,52,415, down Rs 1,051, or 0.68 per cent. It had touched a session high of Rs 1,53,200, which was Rs 266 below its previous close.
Silver futures for September delivery dropped 1.27 per cent, or Rs 2,993, to an intraday low of Rs 2,32,454. The metal was subsequently quoted at Rs 2,32,880, lower by Rs 2,567, or around 1 per cent.
Silver’s intraday high stood at Rs 2,33,982, representing a decline of Rs 1,465 from the previous close. Gold and silver had opened at Rs 1,53,200 and Rs 2,33,780, respectively, on the MCX.
The decline followed reports that US treasury secretary Scott Bessent had warned of unprecedented economic measures against Iran. The proposed strategy reportedly included greater economic isolation and the continuation of a blockade of the Strait of Hormuz.
Market analysts said MCX gold had extended its downward movement after retreating from recent highs near Rs 1,55,500. Immediate resistance was seen between Rs 1,53,000 and Rs 1,53,500, with a decisive breakout potentially taking prices towards the Rs 1,54,000–Rs 1,54,500 range.
Support was placed between Rs 1,52,000 and Rs 1,51,500, followed by a stronger level near Rs 1,51,000. Although gold remained above its major exponential moving averages, technical indicators suggested that bullish momentum was weakening and near-term pressure could persist.
For silver, analysts identified immediate support near Rs 2,32,000, followed by stronger support between Rs 2,31,500 and Rs 2,31,000. A sustained fall below Rs 2,32,000 could trigger further losses as momentum indicators continued to signal a possible trend reversal.
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