Gold and silver prices on the Multi Commodity Exchange (MCX) declined sharply on Tuesday, 26 May, with silver shedding nearly 2 per cent after the US military launched fresh strikes on southern Iran, targeting missile sites and boats allegedly attempting to lay mines. The geopolitical escalation rattled precious metals markets even as diplomatic back-channels remained active.

MCX Gold Price Movement

MCX gold futures (June 5) were trading 0.61 per cent lower at ₹1,58,110 at around 10:25 am IST, down ₹971 from the previous session. The yellow metal touched an intraday low of ₹1,58,000 — a fall of over ₹1,000 or 0.67 per cent — from its prior close of ₹1,59,081, while the intraday high stood at ₹1,58,789.

According to commodity market experts, MCX gold opened with a mild gap down and continued to hold above the ₹1,58,000 mark, reflecting a cautious undertone. 'Immediate resistance is placed in the ₹1,59,000–₹1,59,500 range, while a sustained move above this zone could push prices towards the ₹1,60,000–₹1,60,500 levels,' they noted. On the downside, a break below ₹1,58,000–₹1,57,500 may extend weakness towards the ₹1,56,000–₹1,55,000 zone.

Silver Under Heavier Selling Pressure

MCX silver futures (July 3) faced steeper selling, slipping nearly 2 per cent or over ₹5,000 to hit an intraday low of ₹2,71,972. At last count, silver was trading at ₹2,72,008, down 1.7 per cent or ₹4,708. The intraday high for silver was recorded at ₹2,74,727, still lower by 0.71 per cent or ₹1,989.

Experts noted that MCX silver was holding above the ₹2,73,000 mark, with resistance near ₹2,75,000. A sustained breakout above that level could support recovery towards ₹2,77,000–₹2,78,000, while support is placed around ₹2,72,000.

What Triggered the Sell-Off

The immediate trigger was the US military's fresh strikes on southern Iran, which Washington described as a 'self-defence' operation. The strikes targeted missile sites and boats reportedly attempting to lay mines. This comes amid a three-month-long conflict involving the US and Israel.

Notably, the attacks occurred even as senior Iranian negotiators were in Doha for talks with Qatar's prime minister on a possible agreement to end the ongoing conflict — underscoring the volatile and contradictory signals emerging from the region. 'Safe-haven demand and geopolitical developments continue to influence the direction of precious metals,' commodity experts observed.

Crude Oil Rebounds as Tensions Persist

In contrast to precious metals, global crude oil prices rebounded sharply. International benchmark Brent crude rose 1 per cent to $98 a barrel, while US West Texas Intermediate (WTI) crude gained more than 3 per cent to nearly $94. The divergence between crude and precious metals reflects differing market interpretations of geopolitical risk — oil markets pricing in supply disruption, while gold and silver corrected from recent highs.

With diplomatic talks in Doha still ongoing and the military situation fluid, commodity markets are expected to remain sensitive to any fresh developments out of West Asia.