Daijiworld Media Network - Mumbai
Mumbai, Jul 24: Gold and silver prices declined on Friday as a stronger US dollar and rising geopolitical tensions in the Middle East dampened investor appetite for precious metals. Both commodities fell by nearly one per cent during intraday trade on the Multi Commodity Exchange (MCX).
Gold futures for August delivery opened at Rs 1,42,392 per 10 grams, compared to the previous close of Rs 1,42,821, marking an initial decline of 0.30 per cent.
During the session, gold dropped by as much as Rs 1,079, or 0.75 per cent, to touch an intraday low of Rs 1,41,742 per 10 grams. The contract later recovered some losses after hitting a high of Rs 1,42,518, and was trading at Rs 1,42,376, down Rs 445, or 0.31 per cent, around noon.
Silver futures for September delivery also started the day on a weaker note, opening at Rs 2,18,280 per kg, down Rs 1,095 from the previous close of Rs 2,19,375 per kg.
The white metal declined nearly one per cent during the day, falling Rs 2,050 to an intraday low of Rs 2,17,325 per kg before recovering slightly. It also touched a session high of Rs 2,20,000 per kg.
Global bullion markets mirrored the weakness. COMEX gold slipped 0.48 per cent to around $4,030 an ounce, while silver declined 0.41 per cent to $57.80 an ounce.
Market analysts attributed the decline in bullion prices to the strengthening US dollar index, which climbed above the 101 level amid heightened geopolitical tensions involving the United States and Iran. A stronger dollar typically makes gold and silver more expensive for holders of other currencies, reducing demand.
From a technical perspective, analysts noted that MCX gold opened with a gap down and continued to trade below the Rs 1,42,000 mark, indicating persistent weakness.
They identified Rs 1,41,500 as the immediate support level. A sustained break below this could push prices towards the Rs 1,41,000-Rs 1,40,700 range. On the upside, resistance is seen between Rs 1,42,700 and Rs 1,43,000, followed by the Rs 1,43,700-Rs 1,44,000 zone. According to analysts, the near-term outlook for gold remains weak unless prices reclaim these resistance levels.
Silver also continued to trade with a negative bias after opening lower. Analysts pegged immediate support between Rs 2,16,700 and Rs 2,16,000, with the next support zone at Rs 2,14,500-Rs 2,14,000.
Resistance for silver is placed in the Rs 2,19,000-Rs 2,20,000 range, followed by Rs 2,22,000-Rs 2,23,000. Experts believe the near-term trend is likely to remain subdued unless prices move decisively above the immediate resistance levels.
The market sentiment also remained cautious amid escalating tensions between the US and Iran, with reports of Iranian attacks on US military installations in the Middle East and continued American strikes on Iranian military targets adding to global uncertainty.