Precious Metals Market Report

Key Highlights

• Silver prices rose 2% to ₹2,61,457 per kg on MCX, driven by easing concerns over prolonged disruptions of crude oil shipments amid the US-Iran conflict.
• Gold price advanced 0.8% to ₹1,56,996 per 10 grams on MCX, while Spot gold firmed 0.4% to $5,023.19 per ounce in international markets.

Market Analysis

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The gain in precious metal prices is being driven by prolonged geopolitical tensions in the Middle East and rising oil prices. However, it has been capped on the back of a strengthening dollar. The ongoing US-Israel-Iran conflict has significantly disrupted global energy markets, with oil prices remaining elevated above $105 per barrel.

Central Bank Policy Decisions

Major central banks, including the US Federal Reserve, the UK, euro zone, Japan, Australia, Canada, Switzerland, and Sweden, are scheduled to meet this week to announce their policy decisions. The US Federal Reserve is widely expected to keep rates unchanged for a second consecutive meeting.

Technical Analysis

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Renisha Chainani, Head of Research at Augmont, highlighted that precious metals are currently navigating a phase of consolidation amid heightened global uncertainty. Key technical levels are coming into focus for both gold and silver, with gold establishing support at approximately $5,000 and silver stabilizing near the $80 mark.

Market Outlook

Chainani warned that a sustained breach below the $80 threshold could open the door for further downside towards $75 and $70. On the other hand, a revival in buying interest could push prices higher towards $90 and potentially $95 in the near term. Gold is currently holding a critical support level near $5,000, which remains an important technical floor for the market.