Gold, silver prices fall up to 2 pc amid Strait of Hormuz blockade concerns

Gold and silver prices declined up to 2 per cent on MCX amid rising geopolitical tensions after the US announced a blockade of the Strait of Hormuz. Weak global cues and risk-off sentiment also dragged equities and the rupee lower.

Mumbai: Gold and silver prices on Monday traded under pressure, with the precious metals witnessing a decline of up to 2 per cent after the US announced a blockade of the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), gold futures (June 5 contract) declined as much as 0.78 per cent or Rs 1,195 to hit an intraday low of Rs 1,51,457 per 10 gram. Meanwhile, silver futures dropped by Rs 6,084 or 2.5 per cent to Rs 2,37,190 per kg, hitting an intraday low as of 10:14 am.

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The yellow metal touched an intraday high of Rs 1,51,999, up Rs 653 or 0.42 per cent, from the previous session’s close.

The white metal logged an intraday high of Rs 2,39,068, down Rs 4,206 or 1.72 per cent.

On the global front, precious metals also traded lower. COMEX gold was at $4,626, down 3.37 per cent or $161, while spot gold traded at $4,718.38, lower by $30 or 0.61 per cent.

COMEX silver fell 5.14 per cent or $3.9 to $72.54, while spot silver traded at $74.43, down $1.44 or 1.90 per cent.

Analysts said COMEX gold is currently trading in the $4,700–$4,750 range with limited upside momentum, and a break below $4,650 could trigger further downside toward the $4,600–$4,570 levels. On the upside, resistance is seen around $4,750–$4,770.

MCX gold is hovering in the Rs 1,51,500–Rs 1,52,000 range with subdued buying interest. A sustained move above Rs 1,54,000 may revive momentum, while a break below Rs 1,51,000 could extend weakness toward lower levels.

“In silver, COMEX prices remain below the $75 mark, indicating a weak undertone, with further downside likely if prices slip below $72. MCX silver is trading near Rs 2,38,000, with resistance around Rs 2,40,000 and support seen at Rs 2,37,000,” they added.

Sentiment among traders and investors hit by a fresh escalation in the West Asia conflict after the US and Iran failed to make progress in peace talks.

US President Donald Trump on Sunday announced a blockade of the Strait of Hormuz.

Domestic equity benchmarks Sensex and Nifty slumped 2 per cent in early trade, while major Asian indices declined up to 1 per cent.

Meanwhile, the Indian rupee opened 55 paise lower on Monday. The domestic currency began the session at 93.28 against the US dollar.