Escalating conflicts in the Middle East failed to ignite a rally in gold and silver prices Tuesday, with both precious metals stuck in a tight trading band and closing slightly lower on the MCX. The gold contract for June 2026 shed a mere 0.01% or 14 rupees, settling at 1,49,325 rupees around mid-morning. Its intraday range spanned from 1,49,325 rupees to 1,49,950 rupees, indicating subdued volatility.
Silver’s July 2026 futures contract dropped more noticeably by 0.28% or 673 rupees to 2,43,222 rupees, after hitting a low of 2,42,907 rupees and a peak of 2,43,927 rupees. The lackluster performance comes despite heightened geopolitical risks.
Global markets mirrored the caution. Comex gold rose modestly by 0.14% to $4,540 per ounce, but silver slipped 0.42% to $73.21 per ounce. At the center of the storm is President Trump’s bold assertion that US naval forces destroyed seven Iranian fast-attack boats harassing commercial vessels in the Strait of Hormuz. Tehran has not responded officially, though it maintains dominance over the critical shipping lane.
Compounding pressures on Indian markets, the rupee depreciated sharply against the USD. ICE data shows it opened weak and ended 26 paise lower at 95.33, fueled by global risk aversion and dollar strength.
Experts attribute the muted reaction in precious metals to a combination of factors: steady dollar inflows, anticipation of Federal Reserve signals, and technical resistance levels. However, any intensification of Middle East hostilities could quickly shift sentiment toward safe havens. Domestic traders are bracing for volatility, with eyes on oil prices, currency movements, and diplomatic updates. In this environment of uncertainty, gold and silver’s range-bound trade underscores investor wariness.
