Gold and silver prices continued to decline for a second consecutive session on the MCX on Thursday, influenced by a robust U.S. dollar and increasing anticipations regarding a potential interest rate hike by the Federal Reserve this year. In the domestic market, MCX silver futures for July 2026 delivery experienced a decline of Rs 15,526 over two days, representing a decrease of 7%, bringing the price to Rs 2,10,308 per kg. Gold futures for August 2026 delivery experienced a decrease of Rs 5,863, settling at Rs 1,40,666 per 10 grams. In the previous session, the two experienced a decline of up to 0.2%. According to the CME FedWatch Tool, traders are currently anticipating three rate hikes this year and assign approximately a 67% probability to a hike in September.

The U.S. dollar appreciated for the third consecutive session on Wednesday, reaching a 13-month peak, thereby increasing the cost of gold for holders of other currencies. Gold, traditionally regarded as a safeguard against inflation, often diminishes in attractiveness as interest rates increase due to its lack of yield. In the international market, spot gold declined by 0.4% to $3,985.89 per ounce as of 0043, following a drop to its lowest level since November 2025 on Wednesday. U.S. gold futures for August delivery experienced a decline of 0.2%, settling at $4,001.60. Bullion fell beneath the significant $4,000-an-ounce threshold on Wednesday, marking the first occurrence of this decline since November 2025.

Among other precious metals, spot silver eased 0.2% to $57.33 per ounce, platinum fell 0.2% to $1,575.85, while palladium edged up 0.3% to $1,170.25. Manoj Kumar Jain indicated that gold and silver prices are expected to experience volatility this week, influenced by fluctuations in crude oil prices and the dollar index, as well as in anticipation of the forthcoming U.S. GDP and Core PCE price index data. According to Jain, gold exhibits support levels between $3,980 and $3,920 per troy ounce, with resistance identified in the range of $4,040 to $4,085. In contrast, silver shows support at $55.50 to $53.80 and resistance at $60.00 to $61.40 per troy ounce during the current session.

On MCX, gold has support at Rs 1,40,000-Rs 1,38,800 and resistance at Rs 1,42,400-Rs 1,43,350. Silver, meanwhile, exhibits support within the range of Rs 2,09,100 to Rs 2,05,000, while encountering resistance between Rs 2,16,600 and Rs 2,21,000. Jain advised investors to refrain from bottom-fishing in precious metals at current levels, while recommending the exit of short positions as the market has entered an oversold zone.