Gold and Silver Prices Unchanged in Major Indian Cities on June 5

Precious Metal Prices Decline Amid Ongoing War in Iran

Precious metal prices traded lower in early June 5 trade amid the war in Iran, which has kept oil prices elevated. The international spot gold price fell 0.89 percent to $4,464.80 per ounce, while silver edged 1.81 percent down to $72.63 per ounce over the last 24 hours in early Comex trade.

The domestic MCX spot price closed the Thursday's session at Rs 1,55,392 per 10 grams. In contrast, the gold futures for the August contract on MCX traded 0.76 percent lower to Rs 1,58,337 per 10 grams. The silver futures for the July contract opened 1.39 percent down to Rs 2,61,106 per kilogram.

Market participants are now closely focused on this week's key US employment data, including Non-Farm Payrolls and unemployment figures, which could provide the next major trigger for both the dollar and precious metals. Recent US labour market data has drawn attention to the upcoming payroll report.

Read also: Crude Oil Prices Firm Amid Escalating Tensions in the Gulf Region, Gold Headed for Weekly Decline

According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, gold prices remained range-bound, finding mild support from a decline in crude oil prices. However, broader sentiment remains cautious as traders await key triggers from developments in West Asia, rupee movements, RBI policy outcomes, and US Non-Farm Payrolls and unemployment data. Technically, gold has immediate support near Rs 1,58,500, while Rs 1,60,500 remains the key resistance zone.

Gold prices vary as per purity. Here is a breakdown of the price of 10 grams of 24K, 22K, and 18K pure gold:

According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, gold prices edged higher in yesterday's session, supported by a softer US dollar and a sharp decline in oil prices after Israel and Lebanon agreed to renew their fragile ceasefire, boosting hopes that broader diplomatic efforts could eventually lead to a resolution of the US-Iran conflict.

Read also: MCX Gold Price Surpasses ₹1.59 Lakh per 10 Grams, Silver Gains Amid Hopes for US-Iran Diplomatic Resolution

The renewed truce, brokered through US-mediated discussions, is seen as an important step given that progress in US-Iran negotiations has been closely linked to a cessation of hostilities in Lebanon between Israeli forces and Iran-backed Hezbollah.

Market focus now shifts to the closely watched US Non-Farm Payrolls report, which is expected to provide important clues on the Fed's interest rate outlook and near-term direction for bullion prices. As noted in the Augmont Bullion report (June 4), gold and silver are trading on a weak footing, pressured by rising expectations that central banks may be compelled to tighten monetary policy in response to an energy-driven inflation shock linked to the Middle East conflict.

Gold remains range-bound between $4,450 and $4,600, with the preferred strategy being to buy on dips and sell into rallies. Silver is similarly consolidating within the $72–$78.50 band, with an identical tactical approach recommended.