MUMBAI — Gold and silver prices fell on Monday as investor sentiment weakened following the U.S. announcement of a blockade of the Strait of Hormuz, triggering volatility across global markets.
On the Multi Commodity Exchange, gold futures for June delivery dropped as much as 0.78 percent, or ₹1,195, to an intraday low of ₹1,51,457 per 10 grams. Silver futures declined more sharply, falling ₹6,084, or 2.5 percent, to ₹2,37,190 per kilogram in early trading.
Gold briefly recovered to touch an intraday high of ₹1,51,999, up ₹653 from the previous close, while silver reached a high of ₹2,39,068 but remained lower overall.
Global markets mirrored the weakness. COMEX gold fell 3.37 percent, or $161, to $4,626, while spot gold traded at $4,718.38, down $30. Silver prices also declined, with COMEX silver dropping 5.14 percent to $72.54 and spot silver easing 1.9 percent to $74.43.
Analysts said gold is currently trading in a narrow range with limited upside momentum. A break below $4,650 could push prices toward the $4,600–$4,570 range, while resistance is seen near $4,750–$4,770.
In the domestic market, MCX gold remained in the ₹1,51,500–₹1,52,000 band, with subdued buying interest. Analysts said a sustained move above ₹1,54,000 could revive upward momentum, while a drop below ₹1,51,000 may lead to further declines.
Silver prices also reflected a weak trend. COMEX silver remained below the $75 level, signaling continued downside risk if it falls below $72. On MCX, silver hovered near ₹2,38,000, with resistance around ₹2,40,000 and support near ₹2,37,000.
Market sentiment was dented by escalating tensions in West Asia after stalled peace talks between the United States and Iran. The blockade announcement added to concerns about potential disruptions in global trade and energy supplies.
Indian equity markets also reacted sharply, with the Sensex and Nifty falling about 2 percent in early trading, while major Asian indices declined up to 1 percent.
The Indian rupee weakened as well, opening 55 paise lower at 93.28 against the U.S. dollar. (Source: IANS)
