Silver & gold lose sheen, prices may remain volatile

Geopolitical events significantly influence safe-haven assets like gold and silver. Domestic demand, especially during festivals, provides a floor for prices.

Consider short-term bearish positions on gold/silver futures, but be prepared for a potential reversal as festival demand picks up.

For Indian markets, this story mainly matters for PCJEWELLER and the metals pocket. The current signal is mixed, so traders should look for follow-through in price, volume, and sector breadth instead of reacting to the headline alone.

Watch whether the next market session confirms the setup described here: Lower gold prices could boost demand for Akshaya Tritiya, but price volatility adds uncertainty to margins. Also track volume confirmation, sector participation, and whether the move holds beyond the first reaction.

• •Gold and silver prices saw a sharp decline on the MCX on Thursday.
• •Drop followed remarks by US President Donald Trump regarding Iran, increasing geopolitical tensions.
• •Jewellers anticipate this trend could boost demand for the upcoming Akshaya Tritiya festival.
• •Precious metal prices have been highly volatile recently.
• •Risk flag: Further escalation of Middle East conflict