Gold and Silver Prices Decline Amid Strong Dollar and Geopolitical Tensions

Market Update on Precious Metals

Mumbai, July 24: On Friday, gold and silver prices experienced a downturn, with both metals dropping by nearly 1% due to a robust US dollar and rising geopolitical tensions in the Middle East, which negatively impacted investor confidence.

Gold futures for August delivery on the Multi Commodity Exchange (MCX) commenced at Rs 1,42,392 per 10 grams, reflecting a decrease of 0.30% from the previous closing price of Rs 1,42,821 per 10 grams.

By noon, the price of gold had decreased by Rs 1,079, or 0.75%, reaching an intraday low of Rs 1,41,742 per 10 grams. The metal peaked at Rs 1,42,518 before settling at Rs 1,42,376, down Rs 445 or 0.31% at the latest count.

In a similar trend, silver futures for September delivery opened lower at Rs 2,18,280 per kg, down Rs 1,095 or 0.49% from the previous close of Rs 2,19,375 per kg.

The price of silver fell by Rs 2,050, nearly 1%, hitting an intraday low of Rs 2,17,325 per kg, while it reached an intraday high of Rs 2,20,000 per kg during the trading session.

Globally, precious metals faced similar pressures. COMEX gold was down 0.48% at $1,030 an ounce, while silver decreased by 0.41% to $14.80 an ounce.

Experts in the commodity market attributed the decline in gold and silver prices to the strengthening US dollar index, which surpassed the 101 mark amid escalating tensions between the US and Iran.

From a technical standpoint, analysts noted that MCX gold opened with a gap down and fell below the Rs 1,42,000 mark, continuing to trade weakly around Rs 1,41,500.

Immediate support is identified at Rs 1,41,500, and a drop below this level could push prices towards the Rs 1,41,000-Rs 1,40,700 range.

On the upside, immediate resistance is observed at Rs 1,42,700-Rs 1,43,000, followed by the Rs 1,43,700-Rs 1,44,000 range. Analysts suggest that the near-term outlook remains weak, with prices needing to surpass the immediate resistance zone to gain momentum.

For silver, MCX futures also opened lower and continued to exhibit a weak trend. Immediate support is found in the Rs 2,16,700-Rs 2,16,000 zone, followed by Rs 2,14,500-Rs 2,14,000.

Resistance levels are seen at Rs 2,19,000-Rs 2,20,000, with the next hurdle at Rs 2,22,000-Rs 2,23,000. Analysts indicate that the near-term outlook for silver remains weak unless prices rise above the immediate resistance zone.

Moreover, the US-Iran conflict has escalated recently, with Iran allegedly targeting US military sites in the Middle East, while the US has continued its strikes on Iranian military installations.