Gold and silver prices commenced trading on the MCX on Wednesday with a decline, marking the continuation of losses for a third consecutive session. Recent U.S. military actions against Iran have resulted in an uptick in oil prices and the U.S. dollar, raising apprehensions that inflation may persist at elevated levels. This scenario could lead to prolonged higher interest rates, diminishing the attractiveness of non-yielding bullion. In the domestic market, silver futures for September 2026 delivery declined by Rs 842 (0.3%) to Rs 2,30,015 per kg. Gold futures for August 2026 delivery declined by Rs 222, settling at Rs 1,45,170 per 10 grams. In the previous session, both concluded without significant movement.

The decline followed the U.S. military’s initiation of a new series of strikes on Iran on Tuesday, coupled with the revocation of a licence that had permitted the nation to sell oil, in response to attacks on three tankers in the Strait of Hormuz. The developments exerted additional pressure on an already tenuous ceasefire. U.S. oil prices increased by nearly 3% in early trading, building on the gains observed in the prior session, while the U.S. dollar remained close to its strongest position of the week against a range of major currencies. Traders have raised their expectations regarding a potential interest rate hike by the U.S. Federal Reserve in September. According to the CME FedWatch tool, markets are currently assigning a probability exceeding 67% for a rate hike, an increase from approximately 57% observed on Tuesday.

Investors are anticipating the release of the minutes from the Federal Open Market Committee’s meeting held on June 16-17, which is scheduled for later on Wednesday. This document is expected to provide additional insights regarding the prospective trajectory of interest rates under the leadership of new Federal Reserve Chair Kevin Warsh. In the international market, spot gold experienced a decline of 0.1%, settling at $4,100.32 per ounce, following a drop to its lowest point since July 2. U.S. gold futures for August delivery experienced a decrease of 1.1%, settling at $4,112.50. Among other precious metals, spot silver decreased by 0.3% to $59.82 an ounce, platinum saw a decline of 1.2% to $1,620.38, and palladium experienced a drop of 1.6% to $1,256.25. Manoj Kumar Jain indicated that gold and silver prices are anticipated to exhibit volatility this week, influenced by fluctuations in crude oil prices, the dollar index, and persistent geopolitical tensions.

He indicates that gold has support levels ranging from $4,080 to $4,034 per troy ounce, with resistance levels between $4,154 and $4,180. In contrast, silver is supported at $59.80 to $58.00 and faces resistance at $62.40 to $63.60 per troy ounce during Wednesday’s session. On the MCX, gold is anticipated to find support within the Rs 1,44,400-1,43,550 range, while resistance is expected at Rs 1,46,100-1,46,850. For silver, support is positioned at Rs 2,27,000-2,24,400, whereas resistance is observed at Rs 2,33,300-2,36,000. He advised investors to refrain from establishing new positions in gold and silver prior to the publication of the FOMC meeting minutes.