Gold Dips 1% While Silver Gains Amid Geopolitical Uncertainty
Gold prices dropped nearly 1% on Monday, dipping below the Rs 1.50 lakh mark, while silver reversed the trend by climbing higher. The decline in gold was driven by movements in the US dollar and rising geopolitical tensions, which typically make the metal a safe-haven asset. On the Multi Commodity Exchange, gold futures (December) fell to Rs 1,49,184 per 10 grams, a 0.8% decrease from the previous close, with the lowest point hitting Rs 1,48,850.
In contrast, silver futures (December) saw a rise, peaking at Rs 2,26,999 per kg before settling at Rs 226,340, a 0.2% gain. Analysts noted that gold’s decline has turned the Rs 150,000 level into a resistance zone, with further resistance seen at Rs 151,000-151,600 and Rs 152,500-153,000. Support levels are identified at Rs 148,000-147,300 and Rs 146,000-145,300. The technical outlook remains cautious, with indicators like the Relative Strength Index and Moving Average Convergence Divergence signaling a negative trend.
Silver, on the other hand, has been outperforming gold and holding above the Rs 224,000 support zone. Resistance levels for silver are at Rs 227,000-228,000 and Rs 231,000-232,000. Analysts suggest that a sustained move above Rs 228,000 could strengthen silver’s recovery, while a drop below Rs 224,000 might drag it towards Rs 220,000. The divergence in domestic prices mirrors international trends, where silver has been stronger than gold.
Geopolitical uncertainty remains a significant factor in bullion markets. US President Donald Trump’s recent comments about potential military action against Iran or reaching a deal with Tehran have added to the volatility. Analysts maintain a cautious outlook for gold but see stronger momentum in silver above key support levels.