Gold and Silver Plunge as Strait of Hormuz Blockade Fears Trigger Global Market Sell-Off
Precious metals traded under significant pressure on Monday, reacting sharply to fresh geopolitical tensions. The global sentiment took a downturn after the US announced a blockade of the Strait of Hormuz, dampening investment enthusiasm. This uncertainty led both gold and silver futures, both domestically and internationally, to register notable declines.MCX Gold and Silver Dip Amid Geopolitical Scare
On the Multi Commodity Exchange (MCX), both yellow and white metals witnessed considerable selling pressure. Gold futures (June 5 contract) declined sharply by 0.78 per cent or Rs 1,195, reaching an intraday low of Rs 1,51,457 per 10 gram. Silver futures saw a steeper dip, dropping 2.5 per cent or Rs 6,084 to Rs 2,37,190 per kg.The yellow metal initially touched an intraday high of Rs 1,51,999, representing a rise of Rs 653 or 0.42 per cent from the previous session’s close. Similarly, the white metal peaked at Rs 2,39,068, though it ultimately closed down Rs 4,206 or 1.72 per cent.
Global COMEX Metals Reflect Weak Undertones
The decline was mirrored on global markets, confirming the souring sentiment. COMEX gold futures shed 3.37 per cent or $161, hitting lows as spot gold traded at $4,718.38, down 0.61 per cent. COMEX silver experienced a particularly sharp sell-off, falling 5.14 per cent or $3.9.Market participants are watching the interplay between global oil dynamics and precious metals. This selling pressure aligns with the general caution across global financial assets.
Broader Market Slump Hits Indian Equities and Currency
The geopolitical fears did not limit their impact to commodities; major Indian indices also saw downward pressure. Domestic equity benchmarks Sensex and Nifty slumped 2 per cent in early trading.The foreign exchange market reacted similarly, with the Indian rupee opening 55 paise lower on Monday. The domestic currency commenced the session trading at 93.28 against the US dollar. Meanwhile, major Asian indices also recorded declines up to 1 per cent.
Key Levels and Analyst Outlook for Metals
Analysts caution that current volatility is driven by the breakdown in peace talks between the US and Iran. For COMEX gold, trading currently hovers between $4,700–$4,750 with limited upside momentum. A break below $4,650 could signal further downside, potentially reaching the $4,600–$4,570 support levels.Regarding MCX gold, it is currently hovering in the Rs 1,51,500–Rs 1,52,000 range. A sustained move above Rs 1,54,000 could revive momentum, while a dip below Rs 1,51,000 may extend weakness.
The outlook for silver remains cautious, with COMEX prices remaining below the $75 mark. Traders note that while MCX silver has support near Rs 2,37,000, resistance is firm around Rs 2,40,000.
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