Mumbai, June 3 (IANS) Gold and silver prices traded lower on Wednesday amid escalating tensions between the US and Iran, with precious metals remaining volatile as rising crude oil prices and geopolitical uncertainty kept investors cautious.
On the Multi Commodity Exchange (MCX), gold futures (August) were trading 0.26 per cent or Rs 418, lower at Rs 1,58,928 per 10 grams at around 12:10 pm.
The yellow metal touched an intraday high of Rs 1,59,740, up 0.24 per cent or around Rs 400, while the day’s low stood at Rs 1,58,780, a decline of 0.35 per cent or Rs 566.
Meanwhile, July silver futures traded 0.85 per cent or Rs 2,257 lower at Rs 2,64,450 per kilogram.
The white metal touched an intraday high of Rs 2,67,495, up 0.3 per cent or Rs 788, while slipping to a low of Rs 2,64,023, down around 1 per cent or Rs 2,684.
Earlier in the day, gold and silver began trading at Rs 1,59,447 and Rs 2,66,668, respectively.
International precious metal prices also remained under pressure. Spot gold traded 0.54 per cent lower at around $4,460 per ounce, while COMEX gold futures declined nearly 1 per cent to around $4,486 per ounce. Similarly, spot silver dropped 1 per cent to $74.34 per ounce, while COMEX silver slipped more than 1 per cent to $74.47 per ounce.
Market experts said investors remained cautious amid growing geopolitical uncertainty in West Asia and the continued surge in crude oil prices.
Fresh tensions emerged after the US military said attempted Iranian missile attacks targeting Bahrain, Kuwait and other regional locations were either intercepted or unsuccessful, while diplomatic efforts between Washington and Tehran continued to show limited progress.
Commodity analysts said MCX gold continues to show resilience near the Rs 1,59,000 level despite volatility.
They noted that a decisive breakout above Rs 1,60,000 could trigger further upside momentum, potentially pushing prices towards Rs 1,62,000–1,63,000 per 10 grams. On the downside, support is seen around Rs 1,58,400–1,58,000.
For silver, analysts said Rs 2,68,000 remains an important resistance level, with a breakout potentially taking prices towards Rs 2,69,500–2,70,000 per kilogram.
However, a sustained move below Rs 2,65,000 could weaken prices further towards the Rs 2,63,000–2,61,000 range.
Analysts believe the near-term direction of gold and silver will largely depend on developments in the US-Iran conflict, movements in crude oil prices and broader global economic signals, with safe-haven demand expected to keep precious metals volatile.
In addition, crude oil prices trade higher, intensifying concerns over global inflation and the possibility of interest rates remaining elevated for longer.
--IANS
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