Geopolitical flare-ups in the Middle East sent shockwaves through global commodity markets on Thursday, boosting crude oil prices while hammering gold and silver values on India’s MCX.
After hitting intraday peaks the day before—gold surging 2.7% to Rs 1,54,934 per 10g and silver leaping over 6% to Rs 2,46,376 per kg—both metals opened sharply lower. June gold shed Rs 1,129 to start at Rs 1,50,647, later trading at Rs 1,51,360 (down 0.27%). May silver plunged Rs 4,068 to Rs 2,35,850, stabilizing at Rs 2,36,950 (down 1.24%).
The catalyst? Iran’s claims that the US breached a ceasefire deal, stoking fears of oil supply risks and driving Brent crude up 3.31% to $97.89 per barrel early on, then 2.10% to $96.74. WTI crude advanced 3% to $97.4.
This oil resurgence eroded the flight-to-safety bid for bullion. Experts describe gold’s current range-bound action between Rs 1,50,500-1,51,500 as supported by dip-buying, though upside conviction is lacking. Holding above Rs 1,52,000 opens doors to Rs 1,53,000-1,55,000; failure could see Rs 1,48,000-1,47,000.
Silver, buoyed by industrial demand, trades volatilely near Rs 2,36,000. Key resistance at Rs 2,40,000-2,43,000 guards higher targets of Rs 2,45,000-2,47,000. A firm dip below Rs 2,36,000 may trigger selling toward Rs 2,33,000-2,30,000.
Overall outlook stays mildly bullish, contingent on breaking overhead hurdles. Yesterday’s momentum underscores potential for quick reversals in this high-stakes environment.
With crude’s strength signaling persistent regional instability, precious metals investors brace for more swings. Monitoring US-Iran rhetoric and OPEC responses will be pivotal as markets navigate this turbulent landscape.
