Mixed signals on the Iran war are keeping non-yielding assets like gold and silver on edge. Till Monday, indications of a potential ceasefire and end to war had lifted buyer sentiment for these precious metals.
On Tuesday, however, both gold and silver prices tumbled amid no clear resolution for the Middle East crisis, while crude oil prices continuing their climb.
Gold went as low as $4,616.92 an ounce in the spot market on Tuesday, 0.7% lower than its previous day close at $4,650.56 an ounce. The MCX futures for the yellow metal, which had initially held steady around Rs 1.5 lakh per 10 grams, also slipped to Rs 1.49 lakh.
Amid elevated volatility, the yellow metal is expected to find immediate support at $4613.4 an ounce, according to analysts at Kotak Securities. However, in the case of further downside, the support levels can slip to $4575.5 and $4452.9.
On the flipside, with geopolitical cues in favour, gold spot gold prices may rise to find immediate resistance at $4736.1 an ounce. Any further upmove will open up $4774 and $4896.7 levels for the precious metals, as per analysts.
As far as gold's futures for June on the Multi Commodity Exchange are concerned, immediate support level lies at Rs 1,48,367 per kg. Any further decline in demand, support levels will slip to Rs 1,47,314 and Rs 1,43,904.
A Slipping Silver
Silver rates across MCX and spot markets declined sharply on Tuesday. The devil's metal went as low as Rs 2,30,970 per kg intraday, more than 1% lower than its previous close at Rs 2,33,379 per kg.
Further, the spot market prices treaded on similar lines, with silver slumping over 1% to $71.64 an ounce. The white metal, which had stolen gold's shimmer in 2025, is to find immediate support at $71.36.
However, a more than likely further downside will push support levels further down to $70.48 and $67.66.
Similarly, immediate support for the MCX May futures for silver lies at Rs 2,28,724. Continuation of the downtrend will open further downside to Rs 2,26,090 and Rs 2,17,561.
Oil On The Boil
A perpetual disruption in the oil markets has sent crude prices soaring. Global benchmark brent crude continued its rally and jumped over 1% to touch $111 mark as of 6:30 p.m. IST.
"This reflects a structurally bullish short-term backdrop supported by tightening availability and strong physical demand. However, the upside remains contingent on geopolitical developments," analysts remarked.
However, they pointed out that any de-escalation could ease risk premiums sharply, while continued tensions or supply shocks may sustain elevated prices.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.