Gold Falls 1% on MCX, Silver Gains Amid Geopolitical Uncertainty

Gold prices declined on the Multi Commodity Exchange (MCX) on Monday, while silver moved higher as bullion markets tracked movements in the US dollar and ongoing geopolitical uncertainty.

December gold futures were trading at Rs 1,49,184 per 10 grams around 10 a.m., down Rs 1,206, or 0.8 per cent, from the previous close. The contract fell as much as 1.02 per cent, or Rs 1,540, to an intraday low of Rs 1,48,850.

Gold had opened at Rs 1,51,197 and briefly touched the same level as its intraday high, gaining Rs 807, or 0.53 per cent, before retreating.

December silver futures, meanwhile, climbed as much as 0.49 per cent, or Rs 1,122, to Rs 2,26,999. The contract was later trading at Rs 2,26,340 per kg, up Rs 463, or 0.2 per cent, from the previous close. Silver opened at Rs 2,25,900.

Analysts said gold’s decline below the Rs 1.5 lakh mark has turned the level into an immediate resistance zone. Resistance is seen around Rs 1,51,000-1,51,600, followed by Rs 1,52,500-1,53,000, while support is placed at Rs 1,48,000-1,47,300 and then Rs 1,46,000-1,45,300.

The technical outlook for gold remains cautious, with the Relative Strength Index at 43 and the Moving Average Convergence Divergence indicator in negative territory. Analysts said a sustained move above Rs 1.5 lakh could stabilise the contract, while a break below Rs 1,48,000 may open the way towards Rs 1,46,000.

Silver continued to outperform gold, holding above the Rs 2,24,000 support zone. Its immediate resistance is seen at Rs 2,27,000-2,28,000, followed by Rs 2,31,000-2,32,000.

Geopolitical developments remain a key driver for bullion markets. US President Donald Trump last week said Washington faced a choice between further military action against Iran and reaching an agreement with Tehran.