MUMBAI, India — Gold and silver prices dropped sharply on Tuesday as easing geopolitical tensions in West Asia reduced demand for safe-haven assets, following signals of a temporary pause in potential U.S. military action against Iran.
On the Multi Commodity Exchange, gold futures for April 2 delivery fell as much as Rs 2,576, or about 2 percent, to an intraday low of Rs 1,36,684 per 10 grams. The metal was last trading at Rs 1,37,100, down Rs 2,160, or 1.5 percent.
Silver futures for May 5 delivery declined even more steeply, plunging 4.73 percent, or Rs 10,667, to Rs 2,14,500 per kilogram during the session.
In global markets, COMEX gold was trading at $4,368.76, down 1.6 percent, after hitting an intraday low of $4,340. COMEX silver also fell about 4 percent to $66.56, after touching a low of $66.16.
The sell-off followed comments from the U.S. president, who said Washington and Tehran had held “very good and productive conversations” over the past two days, adding that any military action targeting Iranian power plants and energy infrastructure would be postponed for five days pending further discussions.
However, Iran’s parliamentary speaker Mohammad-Bagher Ghalibaf denied that any negotiations had taken place, calling such reports “fake news” intended to influence financial and oil markets.
Analysts said gold is currently trading in the $4,300 to $4,380 range after a sharp correction, with the broader trend remaining weak despite intermittent safe-haven demand. Immediate resistance is seen at $4,470 to $4,500, while a drop below $4,250 could push prices toward $4,100.
“MCX gold, which opened gap-down, is holding above Rs 1,36,000 but continues to exhibit a weak recovery within a broader bearish trend. Resistance is placed at Rs 1,39,000–Rs 1,40,000, while a fall below Rs 1,34,000 may extend losses toward Rs 1,30,000,” analysts said.
They added that COMEX silver remains under pressure below the $68 to $70 resistance zone, with downside risks toward $64 to $61 if support levels fail.
MCX silver is trading in the Rs 2,15,000 to Rs 2,20,000 range and is expected to remain under pressure unless it breaks above key resistance levels, analysts said. (Source: IANS)
