Gold, Silver Prices Dip After Israel-Iran Ceasefire: Time to Buy the Dip or Book Profits?

Precious metals cooled off sharply on Wednesday, June 25, as the Israel-Iran ceasefire brought relief to global markets, easing geopolitical risk premiums that had earlier supported gold and silver prices. This has left many investors wondering—is this the right time to book profits or add more to their portfolios?

On the Multi Commodity Exchange (MCX):

Gold (August futures) gained ₹274 to trade at ₹97,297 per 10 grams

Silver rose by ₹299 to settle at ₹1,05,216 per kg

However, this minor uptick comes after a sharp fall of 2.91% on Tuesday, the biggest single-day drop since November 25, 2024, as traders locked in gains amid easing tensions in the Middle East.

📉 Global Precious Metal Trends

In the international market:

Spot gold rose 0.2% to $3,328.89/oz, recovering slightly from a 2-week low

US gold futures climbed 0.3% to $3,343/oz

Spot silver remained flat at $35.90/oz

A weaker US Dollar Index and falling Treasury yields supported some rebound in prices, but overall investor sentiment remained cautious post-ceasefire.

💬 Analysts’ Take: Profit Booking or Accumulation?

Riya Singh, Research Analyst, Emkay Global Financial Services

"Gold has strong support at ₹96,500 and could slide to ₹94,500 if this is breached. Risk premium built due to US-Iran tensions is now fading. However, investment demand remains strong with ETF inflows turning positive."

Her recommendation:

📌 "Buy on dips" strategy preferred for medium-term investors.

Rahul Kalantri, VP Commodities, Mehta Equities

“Gold and silver declined post ceasefire. The Fed’s neutral stance and a weak dollar may support a rebound, but current profit booking might extend.”

📉 Silver Under Bearish Pressure

According to Sumeet Bagadia, Executive Director, Choice Broking, silver is showing signs of bearish reversal:

Recent peak: $37.31/oz

Current level: $35.97/oz

Support Levels:

20-DMA at $34.53

50-DMA at $33.46

Sell Target: ₹102,879 with a Stop-Loss at ₹107,400

He notes a "dead cat bounce" in silver prices and sees potential for further decline in the short term.

🛑 Should You Buy, Hold, or Sell Gold and Silver Now?

Gold Outlook:

Short-Term: Consolidation or slight decline due to easing geopolitical tension

Medium to Long-Term: Supported by strong ETF inflows, central bank buying, and inflation concerns

Silver Outlook:

Short-Term: Bearish with chances of further correction

Medium-Term: Mixed; depends on industrial demand and global risk appetite

Investor Tip:

✔ Gold investors may consider staggered accumulation on declines

✘ Silver traders may explore short positions with tight stop-losses