Gold and silver prices opened sharply lower on the MCX on Wednesday as hopes for a lasting U.S.-Iran peace agreement diminished, heightening inflation concerns and bolstering expectations that the Federal Reserve may maintain elevated interest rates. In the domestic market, silver futures for September 2026 delivery decreased by Rs 5,662, reflecting a decline of 2.5%, bringing the price to Rs 2,22,901 per kg. Gold futures for August 2026 delivery experienced a decrease of Rs 1,331, or 1%, settling at Rs 1,41,200 per 10 grams. In the previous session, the two experienced an increase of up to 0.2%. Prospects for a near-term diplomatic breakthrough have diminished following Iran’s announcement that it would not engage with senior U.S. envoys who travelled to the region in the wake of the outbreak of hostilities. Iranian officials indicated that both parties must first address the ceasefire terms established two weeks prior before engaging in more intricate discussions regarding potential constraints on Iran’s nuclear program.

Meanwhile, Federal Reserve Bank of Cleveland President Beth Hammack stated on Tuesday that she could still endorse higher interest rates if inflation pressures do not subside, underscoring the central bank’s persistent hawkish position. Gold, traditionally viewed as a hedge against inflation, tends to lose some of its appeal when interest rates rise due to its lack of yield. In the international market, spot gold declined by 0.6% to $3,981.69 per ounce, following a dip to its lowest level since last November in the prior session. U.S. gold futures for August delivery experienced a decline of 1.1%, settling at $3,994.40.

Among other precious metals, spot silver declined by 0.9% to $58.04 per ounce, platinum decreased by 0.9% to $1,537.78, while palladium saw a slight reduction of 0.2% to $1,202.33. Manoj Kumar Jain indicated that gold and silver prices are expected to exhibit volatility this week, influenced by variations in crude oil prices, shifts in the dollar index, and in anticipation of the U.S. Federal Reserve Chair’s speech as well as the U.S. non-farm payroll data. According to Jain, gold exhibits support in the range of $3,994 to $3,955 per troy ounce, while facing resistance between $4,074 and $4,110 per troy ounce.

Silver exhibits support within the range of $57.70 to $56.00 per troy ounce, whereas resistance is identified between $61.20 and $62.80 per troy ounce in the current trading session. On the MCX, he indicated that gold has support levels at Rs 1,41,100-1,40,000 and resistance levels at Rs 1,43,350-1,44,200. Silver exhibits support levels between Rs 2,25,500 and Rs 2,22,000, while resistance is observed in the range of Rs 2,31,000 to Rs 2,34,400. Jain advised investors to await the Federal Reserve Chair’s speech prior to establishing new positions in gold and silver.