Gold Prices – Bullion Gains Momentum as Crude Oil Weakens
Gold Prices – Gold and silver prices moved higher on Monday as declining crude oil rates and encouraging developments in diplomatic discussions between the United States and Iran improved sentiment across commodity markets.
Gold futures for the August contract on the Multi Commodity Exchange (MCX) witnessed a positive start to the week. By late morning trading, the contract was quoted at Rs 1,47,818 per 10 grams, reflecting an increase of Rs 615 or 0.42 percent compared to the previous closing level.
Gold Shows Recovery in Early Trade
During the trading session, gold touched a high of Rs 1,47,987 per 10 grams, marking a gain of Rs 784 from its previous settlement price. However, the metal also experienced sharp fluctuations, falling to an intraday low of Rs 1,45,110 before recovering. In the previous session, gold had settled at Rs 1,47,203 and opened Monday’s trade at Rs 1,45,110.
Market participants attributed the rebound in gold prices to improving geopolitical sentiment following reports of progress in negotiations between the United States and Iran. At the same time, gains remained somewhat restricted as the US dollar continued to hold near its strongest levels in more than a year.
Silver Records Stronger Percentage Gain
Silver futures for the July contract also traded firmly on the MCX. The metal was quoted at Rs 2,35,324 per kilogram, up Rs 2,139 or 0.92 percent from its previous close of Rs 2,33,185 per kilogram.
The white metal touched an intraday peak of Rs 2,37,106 per kilogram, representing a rise of Rs 3,921 from the previous settlement. Its session low stood at Rs 2,34,296, which still remained above the earlier closing level. Silver had opened the day at Rs 2,37,088 per kilogram.
International Markets Witness Mixed Movement
Global precious metal markets displayed a different trend during the session. COMEX gold was trading nearly 1 percent lower at around $4,198.80 per ounce. COMEX silver also slipped close to 1 percent and was quoted near $65.63 per ounce.
Despite the weakness overseas, domestic bullion markets remained supported by local factors and investor interest in safe-haven assets.
Key Technical Levels for Traders
Commodity analysts noted that gold continues to trade within a mildly negative technical framework despite the latest recovery. According to market experts, immediate support levels are seen between Rs 1,44,250 and Rs 1,42,800 per 10 grams. On the upside, resistance is expected near Rs 1,49,750 and Rs 1,51,100.
Silver, meanwhile, remains highly volatile. Analysts identified support in the range of Rs 2,31,400 to Rs 2,28,150 per kilogram. Resistance levels are placed between Rs 2,41,000 and Rs 2,44,900.
Experts also highlighted that the gold-silver ratio currently stands near 63.6:1. This suggests that silver continues to lag behind gold in terms of overall market performance despite recent gains.
Crude Oil Prices Extend Decline
Energy markets remained under pressure during Monday’s trading session. International benchmark Brent crude dropped more than 2 percent and traded around $79 per barrel. US benchmark West Texas Intermediate (WTI) crude recorded an even steeper decline of approximately 3 percent, hovering near $75 per barrel.
The fall in oil prices contributed to improved sentiment in the broader commodities segment, providing additional support to precious metals during the day.