Gold Dips 1% While Silver Rises Amid Geopolitical Uncertainty

Gold and silver prices moved in opposite directions on Monday, reflecting shifts in the US dollar and geopolitical tensions. Gold futures for December delivery dropped 0.8% to Rs 1,49,184 per 10 grams, marking a 1.02% intraday low at Rs 1,48,850. Meanwhile, silver futures rose 0.2% to Rs 2,26,340 per kg, with an intraday high of Rs 2,26,999.

Analysts noted that gold's decline below Rs 150,000 has turned this 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 (RSI) at 43 and the Moving Average Convergence Divergence (MACD) in negative territory.

Silver, on the other hand, is outperforming gold and holding above the Rs 224,000 support zone. Resistance levels for silver are seen at Rs 227,000-228,000, followed by Rs 231,000-232,000. Analysts suggest that a sustained move above Rs 228,000 could strengthen silver's recovery, while a break below Rs 224,000 might drag it towards Rs 220,000.

The divergence in domestic prices mirrors international markets, where silver has been outperforming gold. Geopolitical developments, particularly concerning US-Iran relations, remain a key factor influencing bullion markets.