Gold and silver prices experienced sharp declines on Monday, with MCX silver futures for May 2026 delivery dropping ₹3,945 (1.5%) to ₹2,53,198 per kg, while gold futures for June 2026 delivery fell ₹1,590 (1%) to ₹1,53,018 per 10 grams. Globally, spot gold slipped 0.4% to $4,809.71 per ounce after hitting its lowest level since April 13, while spot silver eased 0.5% to $80.36 per ounce. The decline was attributed to a stronger U.S. dollar and fresh tensions around the Strait of Hormuz that lifted oil prices and revived inflation concerns. Manoj Kumar Jain of Prithvi Finmart noted that precious metals are witnessing sharp volatility, though key support levels are likely to hold in the near term. He expects silver to sustain above $64 per troy ounce and gold to hold around $4,550 per troy ounce on a weekly closing basis.
The latest decline was triggered by escalating geopolitical tensions, with Donald Trump announcing on Sunday that U.S. forces had seized an Iranian cargo vessel attempting to breach its blockade. Iran responded by ruling out participation in a second round of peace talks, despite warnings of further airstrikes from Washington. These developments have reignited inflation concerns and pushed oil prices higher, creating additional pressure on precious metals. The gold-silver ratio has dropped below the critical 60 level, hovering near a one-month low as silver demonstrates stronger performance relative to gold. Silver is just shy of $80 an ounce as of recent reports, while a share of iShares Silver Trust is about $71, demonstrating continued strength in the precious metal.
Manoj Kumar Jain of Prithvi Finmart provided specific technical levels for both metals, noting that gold has immediate support in the range of $4,840 to $4,770 per troy ounce, with resistance seen at $4,910 to $4,955. Silver has support between $78.80 and $76.60 per troy ounce, while resistance is placed at $84 to $86.20 per troy ounce for the current session. On the domestic front, gold on MCX has support at ₹1,53,350 to ₹1,52,000 and resistance at ₹1,55,500 to ₹1,56,800, while silver has support at ₹2,53,000 to ₹2,48,800 and resistance at ₹2,61,000 to ₹2,66,000. Jain said last week's buy-on-dips strategy in both gold and silver delivered strong results, continuing to recommend buying gold on dips as long as it holds ₹1,47,700 on a closing basis, with upside targets of ₹1,57,000 to ₹1,59,000.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, the recent decline in gold-silver ratio below 60 reflects silver's stronger rally relative to gold. As reported by Mint, Trivedi noted that "a ratio near 60 indicates that while gold continues to rise, it is doing so at a slower pace than silver." He emphasized that this decline is not a bearish signal but rather indicative of strength in the broader precious metals bull market, with gold continuing to act as a safe-haven asset supported by central bank buying, ETF inflows, and macroeconomic uncertainty. Prithvi Finmart's Manoj Kumar Jain continues to advise a buy-on-dips strategy, maintaining that "precious metals are witnessing sharp volatility, though key support levels are likely to hold in the near term." Despite fluctuations driven by movements in the dollar index, crude oil prices, and developments around a potential US-Iran peace deal, the analyst expects both metals to maintain their fundamental support levels.
Despite macro headwinds, investment demand for gold remained strong, with global gold ETFs witnessing inflows of 21 tonnes in early April, indicating continued institutional interest even in relatively stable market conditions. As reported by LiveMint, Chinese gold ETFs attracted $8.1 billion year-to-date, while U.S. ETFs saw outflows of over $2 billion during the same period. Indian ETFs also recorded steady inflows, supported by seasonal demand ahead of Akshaya Tritiya. Central bank activity remained a key pillar of support, with emerging market central banks, led by China and India, adding over 200 tonnes of gold in Q1 2026, signalling sustained confidence in the metal. According to LiveMint, Augmont noted that central bank gold buying remained strong in Q1 2026, with emerging market nations collectively adding over 200 tonnes year-to-date, signalling broader institutional confidence in gold despite ongoing global macroeconomic uncertainties.
