Gold and Silver Markets React to Global Developments

With geopolitical tensions easing, the demand for safe-haven assets like gold has seen a significant decline. MCX Gold June futures have dropped to Rs 92,975/10 grams, marking a substantial decrease of nearly Rs 6,500 from its peak on April 22.

In contrast, Silver July contracts have shown resilience, trading approximately 1% higher at Rs 96,287/kg, an increase of Rs 943 around 10 am.

Factors Influencing Precious Metals Prices

The decline in precious metals prices can be attributed to several factors, including the US-China trade agreement, the Indo-Pak ceasefire, a strengthening dollar index, and rising US bond yields.

A significant sell-off occurred at the week's start, following US-China trade negotiations in Switzerland, which included substantial tariff reductions for both nations over 90 days, boosting global market confidence.

Expert Insights and Trading Recommendations

Manoj Kumar Jain of Prithvifinmart Commodity Research noted the easing of safe-haven buying for precious metals due to the Indo-Pak ceasefire. He provided key trading levels for gold and silver on MCX, recommending investors to consider purchasing silver during price declines and advising a temporary pause in gold trading activities.

Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India.