MCX gold and silver prices fell sharply on Tuesday, 28 April, declining by as much as 2 per cent as escalating US-Iran tensions pushed Brent crude above $110 per barrel for the first time in months, triggering a broad risk-off move in precious metals.

Gold Under Selling Pressure on MCX

On the Multi Commodity Exchange (MCX), gold futures (June 5) came under sustained selling pressure during the session. The yellow metal hit an intraday low of ₹1,50,450 per 10 grams, down 0.83 per cent or ₹1,271, before recovering marginally. At last count, gold was trading at ₹1,50,600, lower by ₹1,121 or 0.74 per cent on the day. The session high was recorded at ₹1,51,802, up just 0.05 per cent or ₹81 — underscoring the absence of meaningful buying interest at higher levels.

A commodity market expert noted that ₹1,52,000 is acting as a key resistance level for MCX gold. "A sustained move above this level could push prices higher, while a break below ₹1,51,000 may lead to extended profit booking," the expert said.

Silver Slides Over 2 Per Cent Intraday

Silver futures (May 5) on MCX faced steeper losses. The white metal touched an intraday low of ₹2,36,600 per kg, a decline of 2.16 per cent or ₹5,224. At last count, silver was trading at ₹2,37,600, down ₹4,224 or 1.75 per cent. The session high was ₹2,41,250, itself down 0.23 per cent from the previous close, indicating selling at every uptick.

According to the expert, silver prices are hovering around ₹2,40,000, reflecting weak buying interest. "A sustained move above ₹2,42,000–₹2,44,000 could support recovery, while a break below ₹2,40,000 may accelerate the downside," the expert added.

Global Cues: COMEX and Crude Oil

In international markets, precious metals also declined. On COMEX, gold fell 0.27 per cent to $4,680 per ounce, while silver slipped 0.73 per cent to $74.48 per ounce. The move in crude oil was more dramatic — Brent crude touched an intraday high of $111.31 per barrel, up approximately 3 per cent from the previous close, while US West Texas Intermediate (WTI) crude surged as much as 2.53 per cent to $98.81 per barrel, both approaching their 52-week highs.

Notably, rising crude prices typically weigh on precious metals by strengthening the dollar and shifting investor focus toward energy assets, creating an unusual dynamic where geopolitical risk simultaneously supports crude and pressures gold.

US-Iran Tensions Drive the Volatility

Tensions between the United States and Iran have remained elevated, with ongoing peace negotiations witnessing significant volatility. According to reports, the US has rejected Iran's proposal, which included reopening the Strait of Hormuz and holding talks on its nuclear programme following the lifting of US maritime restrictions. The US is reportedly seeking a comprehensive resolution to both the Hormuz access and nuclear issues simultaneously, indicating continued uncertainty in negotiations.

This comes amid a broader pattern of commodity market disruption tied to Middle East flashpoints — the Strait of Hormuz handles roughly 20 per cent of global oil flows, making any threat to its access a direct crude price catalyst.

Long-Term Returns Remain Strong Despite the Dip

Despite Tuesday's pullback, the longer-term performance of both metals remains remarkable. Gold has delivered returns of over 40 per cent in dollar terms over the past one year, while silver has more than doubled investors' money, posting a gain of 125 per cent over the same period. The near-term outlook, however, remains cautious, according to commodity market experts, given ongoing geopolitical uncertainty and elevated volatility. Traders will be closely watching the trajectory of US-Iran talks and Brent crude price action in the sessions ahead.