Gold drops 1% on MCX as silver outperforms amid US-Iran tension
Synopsis
Gold slipped nearly 1% on the MCX to ₹1,48,850 on Monday while silver climbed to ₹1,26,999 — a divergence that mirrors global markets. With the RSI at 43 and MACD in negative territory, gold's breach of ₹1,50,000 is a technical red flag, even as US-Iran geopolitical uncertainty keeps bullion demand alive.
Key Takeaways
Gold futures (December) fell as much as 1.02% to an intraday low of ₹1,48,850 per 10 grams on MCX on 5 October .
Silver futures (December) rose up to 0.49% , hitting an intraday high of ₹2,26,999 per kg , outperforming gold.
Gold's fall below ₹1,50,000 has turned that level into a key resistance zone; next support at ₹1,48,000–₹1,47,300 .
RSI at 43 and MACD in negative territory signal a cautious technical outlook for gold.
US President Donald Trump's remarks on a potential deal — or military action — against Iran continue to influence bullion market sentiment.
Gold slipped nearly 1 per cent on the Multi Commodity Exchange (MCX) on Monday, 5 October, retreating below a key psychological threshold even as silver bucked the trend and posted modest gains, reflecting divergent sentiment in bullion markets shaped by US dollar movements and escalating geopolitical uncertainty.
How Gold and Silver Moved on MCX
Gold futures (December contract) were trading at ₹1,49,184 per 10 grams at around 10 am IST, down ₹1,206 or 0.8 per cent from the previous close. At its intraday low, the yellow metal touched ₹1,48,850 — a slide of as much as ₹1,540 or 1.02 per cent. It had earlier tested an intraday high of ₹1,51,197, up 0.53 per cent, before reversing.
Silver futures (December contract), meanwhile, moved in the opposite direction, hitting an intraday high of ₹2,26,999 per kg — a jump of ₹1,122 or 0.49 per cent. At last count, the white metal was trading at ₹2,26,340 per kg, up ₹463 or 0.2 per cent from its previous close. Both metals opened the session at ₹1,51,197 and ₹2,25,900, respectively.
Technical Outlook: Gold Under Pressure
Commodity analysts note that gold's slip below ₹1,50,000 has now turned that level into an immediate resistance zone. Resistance is seen at ₹1,51,000–₹1,51,600, and then at ₹1,52,500–₹1,53,000. On the downside, support is at ₹1,48,000–₹1,47,300, followed by ₹1,46,000–₹1,45,300.
The technical picture remains cautious, with the Relative Strength Index (RSI) at 43 and the Moving Average Convergence Divergence (MACD) indicator in negative territory. According to analysts, a sustained move above ₹1,50,000 is needed to stabilise the contract, while a break below ₹1,48,000 could open the door to ₹1,46,000.
Silver's Relative Strength
Silver is outperforming gold and holding firmly above the ₹2,24,000 support zone, according to commodity analysts. Immediate resistance is seen at ₹2,27,000–₹2,28,000, with the next band at ₹2,31,000–₹2,32,000. A sustained move above ₹2,28,000 could accelerate silver's recovery, while a break below ₹2,24,000 risks a pullback toward ₹2,20,000. The divergence in domestic prices mirrors trends in international markets, where silver has similarly been outperforming gold.
Geopolitical Backdrop: US-Iran Tensions in Focus
Beyond technical signals, geopolitical developments remain a critical driver for bullion markets. US President Donald Trump last week indicated that Washington faced a choice between further military action against Iran and reaching a diplomatic deal with Tehran — remarks that have kept risk sentiment in precious metals elevated. This comes amid broader uncertainty over Middle East stability, which has historically underpinned safe-haven demand for both gold and silver.
With key technical levels in play and geopolitical risk showing no signs of abating, the near-term direction of both metals will likely hinge on fresh developments from Washington and any shift in the US dollar's trajectory.
Point of View
50,000 is more than a technical setback — it signals that safe-haven demand is not uniform even when geopolitical risk is elevated, suggesting dollar strength is currently outweighing fear as the dominant driver. Silver's relative outperformance is consistent with industrial demand providing a floor that purely monetary metals like gold lack. The US-Iran dynamic is the wildcard: if tensions escalate sharply, gold's RSI and MACD could reverse quickly, making the ₹1,48,000 support level the one number every bullion trader will be watching this week.
NationPress
5 Oct 2026
Frequently Asked Questions
Why did gold prices fall on MCX today?
Gold fell up to 1.02% on the Multi Commodity Exchange on 5 October, weighed by movements in the US dollar and profit-taking after the metal breached the key ₹1,50,000 level. Geopolitical uncertainty linked to US-Iran tensions provided some support but was not enough to offset selling pressure.
What is the current gold price on MCX on 5 October 2026?
Gold futures (December contract) were trading at approximately ₹1,49,184 per 10 grams around 10 am IST on 5 October, down ₹1,206 or 0.8% from the previous close, after hitting an intraday low of ₹1,48,850.
Why is silver outperforming gold today?
Silver futures rose as much as 0.49% to ₹2,26,999 per kg, bucking gold's decline. Analysts note that silver is holding above a key ₹2,24,000 support zone, and this divergence mirrors international markets where silver has similarly been outperforming gold in recent sessions.
What are the key support and resistance levels for gold on MCX?
Commodity analysts see immediate resistance for gold at ₹1,51,000–₹1,51,600, then ₹1,52,500–₹1,53,000. Support is at ₹1,48,000–₹1,47,300, with a deeper support band at ₹1,46,000–₹1,45,300. A sustained move above ₹1,50,000 is needed to stabilise sentiment.
How do US-Iran tensions affect gold and silver prices?
Geopolitical uncertainty, including US President Donald Trump's remarks last week about choosing between military action and a deal with Iran, typically boosts safe-haven demand for precious metals. Analysts consider these developments a key ongoing driver for both gold and silver prices in bullion markets.
