Gold and silver prices declined by up to 1 per cent on Tuesday, affected by higher US yields and ongoing uncertainty in the US-Iran standoff, which impacted bullion sentiment.
On the Multi Commodity Exchange (MCX), December gold futures were trading at Rs 1,48,410 per 10 grams, down Rs 487 or 0.33 per cent.
Gold prices dipped as much as 0.50 per cent or Rs 747 to an intraday low of Rs 1,48,150 by 10:34 am, while the intraday high reached Rs 1,49,034, up 0.09 per cent or Rs 137.
Meanwhile, December silver futures fell as much as 1.29 per cent or Rs 2,942 to an intraday low of Rs 2,24,500 per kg.
At the last count, silver was trading at Rs 2,25,338, down Rs 2,104 or 0.93 per cent, after touching an intraday high of Rs 2,26,359, down 0.47 per cent or Rs 1,083.
The sell-off in precious metals came amid rising tensions between the US and Iran over the Strait of Hormuz, which kept energy prices elevated.
Spot gold also traded lower after a 4 per cent fall in the previous session to a seven-week low.
Reports indicate that Iranian officials have privately expressed doubts about reaching a deal with Washington to end hostilities before the US midterm elections in November.
This follows US President Donald Trump’s rejection of Iran’s recent proposal to reopen the strategic waterway within seven days.
The ongoing uncertainty has pushed energy prices higher while increasing US yields have pressured non-yielding assets like gold and silver.
Commodity experts place immediate resistance for gold at Rs 1,50,000-1,50,700, with further resistance at Rs 1,52,000-1,52,600, and support levels at Rs 1,48,000-1,47,300, followed by Rs 1,46,000-1,45,300.
The near-term outlook for gold remains cautious, with a sustained rise above Rs 1,50,000 required to confirm recovery, while a sharp drop below Rs 1,48,000 may lead to further declines.
For silver, experts note the metal opened with a gap-down near Rs 2,26,000 and stayed below the Rs 2,27,000-2,28,000 resistance zone established after Monday’s sharp fall.
Immediate resistance for silver is at Rs 2,27,000-2,28,000, then Rs 2,32,000-2,33,000, with support observed at Rs 2,24,000-2,23,000 and Rs 2,20,000-2,19,000.
The silver outlook is cautious to negative, requiring a sustained move above Rs 2,28,000 to stabilise, while a decisive break below Rs 2,24,000 could see silver falling to the Rs 2,20,000 range.