Gold Dips 1% While Silver Rises Amid Geopolitical Uncertainty

Gold and silver prices in India moved in opposite directions on Monday, reflecting broader market trends and geopolitical uncertainties. Gold futures for December delivery on the Multi Commodity Exchange dropped by 0.8%, trading at Rs 1,49,184 per 10 grams. At its lowest point, the yellow metal fell 1.02% to Rs 1,48,850, while its highest intraday price was Rs 1,51,197.

In contrast, silver futures for December rose by 0.2%, settling at Rs 226,340 per kg. The white metal hit an intraday high of Rs 2,26,999, a gain of 0.49%. Analysts noted that gold's decline below Rs 150,000 has turned that level into an immediate resistance zone, with further resistance seen at Rs 151,000-151,600 and Rs 152,500-153,000. Support levels for gold are at Rs 148,000-147,300, followed by Rs 146,000-145,300.

Silver, meanwhile, is outperforming gold and holding above the Rs 224,000 support zone. Analysts see immediate resistance at Rs 227,000-228,000, followed by Rs 231,000-232,000. The technical outlook for gold remains cautious, with the Relative Strength Index at 43 and the Moving Average Convergence Divergence indicator in negative territory. Analysts suggest that a sustained move above Rs 150,000 would be needed to stabilize the contract, while a break below Rs 148,000 could expose it to Rs 146,000.

Geopolitical developments, particularly tensions involving Iran, remain a key factor influencing bullion markets. US President Donald Trump recently highlighted the choice between further military action against Iran and reaching a deal with Tehran. This uncertainty, combined with movements in the US dollar, contributed to the mixed performance of gold and silver.