Silver prices crash ₹8,500/kg, gold drops ₹2,000/10g as US-Iran tensions revive inflation fears; is more fall ahead?
A Ksheerasagar
Silver prices resumed their losing streak in Tuesday's trade on November 3, after a brief recovery, as crude oil prices jumped following reports of a US strike on Iran's Qeshm Island. The development fuelled inflation concerns and reinforced expectations that global central banks could keep interest rates higher for longer.
The December silver futures contract on the MCX slipped ₹8,528 per kg to hit its lowest level since late November 2025 at ₹1,75,251. The decline erased all of Monday's gains of ₹4,647 and widened the metal's year-to-date losses to 25%.
Gold prices also retreated after the previous session's gains, with the yellow metal falling nearly ₹2,079 per 10 grams to ₹1,37,863. After posting losses for two consecutive months, both precious metals have started November on a volatile note.
Crude oil prices staged a strong recovery, rebounding 1% after reports that the United States had struck Iran's Qeshm Island. The development raised concerns about an escalation in the eight-month conflict and prolonged disruptions to oil supplies from the Middle East.
The reported attacks came days after US President Donald Trump indicated that he wanted to give diplomacy more time before considering renewed military action.
Meanwhile, investors also turned cautious ahead of the US midterm elections, which will determine control of both chambers of Congress. A potential Democratic takeover has added to market uncertainty.
The outcome of Tuesday's vote could fundamentally reshape US President Donald Trump's final two years in the White House. Republicans and Democrats are battling for control of Congress and key governors' offices amid widespread disaffection over high prices.
Investors are also awaiting the closely watched US jobs report due later this week, which could provide fresh insight into labour market conditions and influence expectations for Federal Reserve monetary policy.
Elevated energy prices have strengthened expectations that the Federal Reserve will keep interest rates higher for longer, increasing the opportunity cost of holding non-yielding assets such as gold and silver.
Traders currently see a 75% chance of a rate hike in December, according to CME's FedWatch tool.
Separately, the World Gold Council lowered its forecast for growth in gold investment this year to 200 metric tonnes from 400 tonnes previously, citing weaker appetite for bars and coins, although it raised its estimate for central bank purchases.
Ponmudi R, CEO of Enrich Money, said the next support for silver is placed at ₹170,000– ₹172,000. On the upside, immediate resistance is seen at ₹186,000– ₹188,000, followed by ₹194,000– ₹196,000. The rebound stalled below ₹1,86,000, leaving a lower high on the chart.
Ponmudi said the RSI, near 23, remains in extremely oversold territory, although the MACD histogram continues to widen on the downside, indicating that selling pressure has yet to ease.
For gold, immediate resistance is placed at ₹140,000– ₹141,000, followed by ₹143,000– ₹143,700. The next support zone lies at ₹134,000– ₹135,000. The RSI, near 32, remains weak, while the MACD histogram continues to widen on the downside, signalling persistent bearish momentum.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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HomeMarketsStock MarketsSilver prices crash ₹8,500/kg, gold drops ₹2,000/10g as US-Iran tensions revive inflation fears; is more fall ahead?
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