Mumbai, March 24 (NationPress) The prices of gold and silver experienced a significant drop on Tuesday, as optimism surrounding a potential resolution to the conflict in West Asia reduced the demand for safe-haven assets. This shift followed an announcement from the US President regarding a temporary halt on possible military strikes against Iran's energy sectors.

On the Multi Commodity Exchange (MCX), gold futures (April 2) saw a decrease of Rs 2,576, approximately 2 percent, reaching an intra-day low of Rs 1,36,684 per 10 grams by 10:40 am. The precious metal was last recorded at Rs 1,37,100, down by Rs 2,160 or 1.5 percent.

Similarly, silver futures (May 5) plummeted by 4.73 percent, equating to Rs 10,667, dropping to Rs 2,14,500 per kg during the trading session.

In international markets, COMEX gold was priced at $4,368.76, reflecting a 1.6 percent decline after dipping to an intraday low of $4,340.

Meanwhile, COMEX silver fell nearly 4 percent, trading at $66.56 after reaching an intraday low of $66.16.

The decline in precious metals was influenced by the US President's remarks indicating that Washington and Tehran had engaged in “very good and productive conversations” over recent days, with any military actions concerning Iranian energy facilities postponed for five days, pending further negotiations.

However, Iran’s parliamentary speaker, Mohammad-Bagher Ghalibaf, refuted claims of negotiations, labeling such reports as “fake news” designed to manipulate financial and oil markets.

Analysts noted that COMEX gold is fluctuating within the $4,300–$4,380 range following a sharp correction, with the overall trend appearing weak despite sporadic support from safe-haven demand. Immediate resistance levels are identified at $4,470–$4,500, while a drop below $4,250 could lead to further declines towards $4,100.

As for MCX gold, which opened lower, it remains above Rs 1,36,000 but continues to show weak recovery against a broader bearish backdrop. Resistance is projected at Rs 1,39,000–Rs 1,40,000, while a fall below Rs 1,34,000 could exacerbate losses down to Rs 1,30,000, analysts warn.

Furthermore, they indicated that COMEX silver is still under pressure, remaining below the $68–$70 resistance zone, with potential downside risks towards $64–$61 if support levels fail to hold.

MCX silver is currently trading within the Rs 2,15,000–Rs 2,20,000 range, exhibiting a bearish outlook unless prices can reclaim higher resistance levels, the analysts concluded.