Gold Prices Drop Sharply on MCX as Israel-Iran Ceasefire Dampens Safe-Haven Demand

GG News Bureau
New Delhi, 24th June: Gold prices fell sharply in early trade on Tuesday on the Multi Commodity Exchange (MCX), following a dip in global bullion rates after US President Donald Trump announced a ceasefire between Israel and Iran. The development reduced the appeal of gold as a safe-haven asset, triggering a sell-off.

MCX gold futures opened 0.58% lower at ₹98,807 per 10 grams, compared to Monday’s close of ₹99,388. The yellow metal plunged further during early trading hours, hitting an intraday low of ₹96,422 — down nearly 3%. At 9:10 AM, gold was trading at ₹98,178 per 10 grams, down ₹1,210 or 1.22%.

Silver also tracked gold’s fall, with MCX silver prices opening 0.24% lower at ₹1,06,502 per kg and slipping to a low of ₹1,05,905. It was last seen trading down 0.77% at ₹1,05,934.

Globally, spot gold prices declined by 0.5% to $3,351.47 an ounce — their lowest since June 11 — while US gold futures were down 0.9% at $3,365.30. Spot silver also eased 0.1% to $36.10 per ounce.

The sharp pullback in bullion prices came after Trump declared a “complete and total ceasefire” between Israel and Iran, potentially ending the 12-day conflict that rattled global markets. However, Iran’s foreign minister stated that hostilities would not end unless Israeli attacks stopped.

“Gold prices declined as the ceasefire agreement between Israel and Iran reduced demand for safe-haven assets,” said Jigar Trivedi, Senior Research Analyst, Reliance Securities. “Investors now look ahead to Fed Chair Jerome Powell’s testimony before Congress for further cues.”

Meanwhile, US Fed Vice Chair for Supervision Michelle Bowman hinted at a possible rate cut due to emerging risks to the labor market. All eyes are on Powell’s scheduled appearance before the House Financial Services Committee later on Tuesday.

Support and Resistance Levels

• Gold (MCX):
  Support – ₹97,900 / ₹98,490
  Resistance – ₹98,600 / ₹99,650 / ₹1,00,000
• Gold (COMEX):
  Support – $3,345 / $3,320
  Resistance – $3,400 / $3,422
• Silver (MCX):
  Support – ₹105,880 / ₹105,000
  Resistance – ₹1,07,550 / ₹1,08,400
• Silver (COMEX):
  Support – $36.35 / $36.10
  Resistance – $37.00 / $37.25

Analysts expect further volatility in bullion depending on geopolitical developments and Fed commentary.