Gold and Silver Prices Fall Sharply as Easing West Asia Tensions Weigh on Safe-Haven Demand

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Gold and Silver Prices Fall Sharply as Easing West Asia Tensions Weigh on Safe-Haven Demand​

Precious Metals Decline Across MCX and Global Markets​

Mumbai, March 24: Gold and silver prices witnessed a sharp decline on Tuesday, as easing tensions in West Asia reduced demand for safe-haven assets following signals of a temporary pause in potential US military action targeting Iran’s energy infrastructure.

On the Multi Commodity Exchange (MCX), gold futures (April 2) dropped by as much as ₹2,576, or करीब 2%, hitting an intra-day low of ₹1,36,684 per 10 grams by 10:40 am. The contract was last seen trading at ₹1,37,100, down ₹2,160 or 1.5%.

Silver futures (May 5) also recorded a steep fall, plunging 4.73% or ₹10,667 to ₹2,14,500 per kg during the session.

Global Gold and Silver Prices Mirror Weakness​

In the international market, COMEX gold declined 1.6% to $4,368.76 after touching an intra-day low of $4,340.

COMEX silver also came under pressure, falling करीब 4% to $66.56 after slipping to an intra-day low of $66.16.

De-escalation Signals Impact Safe-Haven Demand​

Precious metals weakened after the US President indicated progress in discussions with Iran, stating that both sides had held “very good and productive conversations” over the past two days. He also said that any military action on Iranian energy infrastructure would be deferred for five days, pending further talks.

However, Iran’s parliamentary speaker Mohammad-Bagher Ghalibaf rejected the claims, calling reports of negotiations “fake news” aimed at influencing financial and oil markets.

Technical Levels Indicate Continued Weakness​

According to analysts, COMEX gold is currently trading in the $4,300 to $4,380 range following a sharp correction, with the broader trend remaining weak despite intermittent safe-haven support. Immediate resistance is placed at $4,470 to $4,500, while a break below $4,250 could lead to further downside toward $4,100.

MCX gold, which opened gap-down, is holding above ₹1,36,000 but continues to show limited recovery within a broader bearish trend. Resistance is seen at ₹1,39,000 to ₹1,40,000, while a fall below ₹1,34,000 may push prices toward ₹1,30,000.

Analysts noted that COMEX silver remains under pressure below the $68 to $70 resistance zone, with downside risks toward $64 to $61 if support levels fail.

Similarly, MCX silver is trading within the ₹2,15,000 to ₹2,20,000 range and retains a bearish bias unless it manages to reclaim higher resistance levels.