Middle East Tensions Send Gold and Silver Prices Plummeting

Gold and silver prices fell sharply on Friday as escalating geopolitical tensions in the Middle East weighed on investor sentiment. The strengthening US dollar index, which climbed above the 101 mark, also contributed to the decline.

In India, gold futures for August delivery opened at Rs 1,42,392 per 10 grams, down 0.30 per cent from the previous close of Rs 1,42,821 per 10 grams on the Multi Commodity Exchange (MCX). The yellow metal fell as much as Rs 1,079 or 0.75 per cent to an intraday low of Rs 1,41,742 per 10 grams.

Silver futures for September delivery also opened lower at Rs 2,18,280 per kg, down Rs 1,095 or 0.49 per cent from the previous close of Rs 2,19,375 per kg on MCX. The white metal declined by as much as Rs 2,050 or nearly 1 per cent to hit an intraday low of Rs 2,17,325 per kg.

Analysts attributed the weakness in gold and silver prices to the strengthening US dollar index and escalating geopolitical tensions between the US and Iran. From a technical perspective, analysts said MCX gold opened with a gap down and slipped below the Rs 1,42,000 mark, continuing to trade with a weak bias around Rs 1,41,500.