Gold and silver prices commenced the day with a notable decline on the Multi Commodity Exchange on Wednesday, driven by a robust dollar and increasing anticipations of U.S. interest rate increases, which overshadowed the positive sentiment stemming from decreasing oil prices as the Strait of Hormuz slowly re-opens. In the domestic market, MCX silver futures for July 2026 delivery experienced a decline of Rs 3,256 (1.4%), bringing the price to Rs 2,22,578 per kg. Gold futures for August 2026 delivery decreased by Rs 2,159, settling at Rs 1,44,370 per 10 grams. In the prior session, the two experienced a decline of up to 0.25%.

Gold, traditionally regarded as a safeguard against inflation, often diminishes in attractiveness as interest rates increase due to its lack of yield. Adding to the pressure, the U.S. dollar reached its highest level in over a year, rendering bullion more costly for purchasers using alternative currencies. Market expectations have experienced a significant shift in response to the recent Federal Reserve meeting held last week. Market participants are currently factoring in three interest rate increases from the U.S. central bank this year, a significant shift from prior expectations of merely one hike ahead of the meeting, as indicated by the CME FedWatch Tool.

In the international market, spot gold experienced a decline of 1%, settling at $4,067.51 per ounce, following a dip to its lowest point since June 11. U.S. gold futures for August delivery declined by 1.6%, settling at $4,083.90. Among other precious metals, spot silver eased 0.9% to $61.44 per ounce, platinum fell 0.8% to $1,638, while palladium declined 0.8% to $1,227.41. Manoj Kumar Jain indicates that gold is supported in the $4,089-$4,040 per troy ounce range, with resistance observed at $4,185-$4,220 per troy ounce. Silver exhibits support levels ranging from $60.00 to $58.40 per troy ounce, while resistance is observed between $63.60 and $65.20 per troy ounce throughout the session.

On MCX, gold is anticipated to encounter support within the range of Rs 1,45,200 to Rs 1,44,000, while resistance is projected between Rs 1,47,200 and Rs 1,48,100. Silver exhibits support within the range of Rs 2,21,000 to Rs 2,16,600, whereas resistance is identified between Rs 2,28,800 and Rs 2,31,200. Jain advised investors to refrain from starting new buying positions in gold and silver in anticipation of the upcoming U.S. GDP data release.