Both gold and silver prices continued to decline on Thursday, with silver experiencing a more significant drop compared to gold. This trend has been attributed to global market influences and profit-taking activities. On the Multi Commodity Exchange (MCX), gold futures for June 5, 2026, were observed at Rs 1,49,283 as of 11:15 AM, reflecting a drop of Rs 4,425 or 2.88%. The price ranged from Rs 1,49,250 to Rs 1,52,490 throughout the day. Conversely, silver futures for May 5, 2026, displayed an even steeper decline, trading at Rs 2,28,891 at 11:14 AM, down Rs 14,610 or 6.00%. The day’s range for silver prices was between Rs 2,28,891 and Rs 2,42,800.

Global Market Influences on Precious Metals

The downturn in domestic prices aligns with international market trends. Spot gold prices fell by 2% to $4,664.39 per ounce, while US gold futures dropped 2.5% to $4,691.10. This decrease follows a recent peak for gold, which had reached its highest point since March 19 before reversing gains. Contributing to this price shift are fresh remarks from US President Donald Trump regarding the ongoing conflict with Iran. His comments indicated continued military operations over the next few weeks, which have led to an increase in crude oil prices and diminished expectations for early interest rate cuts. This combination of factors typically exerts downward pressure on gold and silver prices.

Market Dynamics and Expectations

Data from the exchange indicates a short build-up in both gold and silver, meaning new short positions are being established as prices decline. This trend suggests traders anticipate further downward movement in the near term. The increasing short positions coincide with falling prices and rising open interest, signaling a bearish market outlook.

Factors Behind Silver’s Greater Decline

Silver’s larger decline in comparison to gold is indicative of its heightened volatility. While gold is predominantly viewed as a safe-haven asset, silver has connections to industrial demand, making it more susceptible to shifts in global economic forecasts and market sentiments. Ponmudi R, the CEO of Enrich Money, commented on the signs of weakness in MCX gold as it trades below the ₹1,51,000 mark, suggesting underlying selling pressure at these elevated levels. The observed price action indicates decreasing strength, prompting caution among investors.

Key Price Levels to Monitor

Important price levels are critical to monitor in the upcoming days. A sustained movement above the ₹1,52,000 level could enhance bullish momentum and pave the way for potential targets around ₹1,54,000 to ₹1,55,000, with possibilities extending to ₹1,56,000 to ₹1,58,000, where selling pressure may increase. Conversely, a break below ₹1,50,000 could lead to further profit booking, potentially lowering prices towards the ₹1,48,000 to ₹1,46,000 range. The current market sentiment remains cautious, influenced by macroeconomic uncertainty and geopolitical developments.

Outlook for Gold and Silver Prices

The short-term outlook for both gold and silver remains volatile amid ongoing global factors, crude oil price fluctuations, and developments related to the situation in Iran. While gold may find some support due to its appeal as a safe investment, silver could experience more pronounced fluctuations in either direction based on market conditions.

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