Gold and silver prices commenced trading on the Multi Commodity Exchange with a notable decline on Friday, driven by a robust U.S. dollar and assertive communication from the Federal Reserve, which overshadowed a significant weekly decrease in oil prices linked to the US-Iran interim resolution. In the domestic market, MCX silver futures for July 2026 delivery declined by Rs 5,371 (2.3%), settling at Rs 2,32,201 per kg. Gold futures for August 2026 delivery decreased by Rs 2,269, settling at Rs 1,49,309 per 10 grams. With today’s decline, silver has decreased by Rs 20,000 over the past two sessions, while gold has fallen by Rs 7,000.
In the previous session, the two observed a significant selloff, with silver declining by more than 5% and gold falling by 3%. Rising inflation concerns associated with the Iran conflict have prompted a growing number of central banks to either raise borrowing costs or indicate measures intended to mitigate price pressures. According to the CME FedWatch Tool, traders currently assign an 87% probability to a Federal Reserve rate hike in December. Higher interest rates generally diminish gold’s appeal, as the metal does not produce any yield.
In the international market, Spot gold experienced a decline of 0.6%, settling at $4,184.33 per ounce as of 0211, marking a weekly decrease of 0.9%. Among other precious metals, spot silver fell 1.5% to $64.83 per ounce, platinum declined 1.3% to $1,674.47, and palladium was down 0.8% at $1,268.65. Manoj Kumar Jain indicated that gold and silver prices are expected to exhibit volatility throughout the session, influenced by fluctuations in crude oil prices, shifts in the dollar index, and ongoing developments concerning US-Iran peace deal negotiations.
On MCX, gold exhibits support levels at Rs 1,48,000 to Rs 1,46,650, while resistance is observed at Rs 1,50,150 to Rs 1,51,100. Silver exhibits support within the range of Rs 2,34,000 to Rs 2,30,500, while encountering resistance between Rs 2,41,000 and Rs 2,44,400. Jain advised traders to refrain from initiating new long positions in gold and silver at the present levels. However, he stated that long-term investors may take advantage of the recent dip to accumulate via the SIP route.