Gold Silver Decline Despite US-Iran Strait Tensions

Precious metals markets in Mumbai kicked off the week on a bearish note, with gold and silver opening lower on MCX amid persistent US-Iran discord over the Hormuz Strait. This counterintuitive slide highlights shifting investor priorities. MCX gold June 2026 contract fell ₹382 (0.25%) to open at ₹1,51,150 from ₹1,51,532. By 10 AM, it eased to ₹1,51,100 (-₹252 or 0.17%), with intraday extremes of ₹1,50,860 low and ₹1,51,347 high. July 2026 silver opened ₹238 (0.094%) lower at ₹2,50,699 versus ₹2,50,937 prior close. It stood at ₹2,50,363 (-₹574 or 0.23%) later, ranging from ₹2,49,760 to ₹2,51,231. Global cues mirrored the downturn: Comex gold -0.55% at $4,619/oz, silver -0.48% at $76.065/oz. Trump's bold 'Project Freedom' unveiled plans to escort stranded vessels through the strait, enlisting allied navies. In a social media statement, he emphasized the innocence of crews ensnared by conflict and issued a stark warning to Iran: any peril will invite decisive retaliation. While Iran maintains a hardline, the proactive US move has buoyed risk assets. Equity bourses, domestic and international, posted advances, siphoning liquidity from gold and silver. Experts caution that volatility looms large. Strait disruptions could spike energy prices and revive haven demand. Until clarity emerges, traders brace for swings, with technical supports under watch.