Silver prices commenced the trading session on the MCX with a notable decline on Monday, marking a continuation of losses for a second consecutive session. This downturn is attributed to heightened apprehensions regarding the potential closure of the Strait of Hormuz, which has led to a significant increase in oil prices. Such developments have intensified worries that inflation may persist at elevated levels, thereby necessitating sustained higher interest rates. In the domestic market, MCX silver futures for September 2026 delivery decreased by Rs 5,400 (2.5%), settling at Rs 2,17,277 per kg. Gold futures for August 2026 delivery decreased by Rs 2,000, settling at Rs 1,41,557 per 10 grams. The decline occurred following the escalation of tensions between the United States and Iran over the weekend. The two sides engaged in significant missile and drone assaults, with Tehran directing its efforts towards U.S. installations throughout Gulf states on Sunday, while also asserting that it had once more secured control over the strategically vital Strait of Hormuz.

The escalating tensions resulted in a roughly 4% increase in oil prices, bolstered the U.S. dollar, and exerted pressure on Asian equity markets, as investors evaluated the inflationary implications of rising energy costs. Markets will now closely monitor Federal Reserve Chair Kevin Warsh’s inaugural semiannual testimony before Congress, as well as important U.S. economic data set to be released this week, including June CPI, PPI, and retail sales figures, for new insights on inflation, economic growth, and the trajectory of monetary policy. In its monetary policy report to Congress released on Friday, the Federal Reserve indicated that U.S. inflation “stepped up further this spring” due to the cumulative effects of tariffs, war-related surges in energy costs, and the swift growth of artificial intelligence investment, which have contributed to the price pressures that began to accumulate last year.

Meanwhile, data released on Friday indicated that COMEX gold speculators decreased their net long positions by 1,964 contracts, bringing the total to 114,854 for the week ending July 7. Spot gold declined 1.2% to $4,072.78 an ounce, while U.S. gold futures for August delivery slipped 0.8% to $4,081.70 an ounce. Among other precious metals, spot silver fell 1.6% to $58.89 an ounce, platinum declined 1.1% to $1,610.22, and palladium dropped 1.3% to $1,260.15 an ounce. Manoj Kumar Jain indicates that gold is positioned with support levels ranging from $4,074 to $4,040 per troy ounce and resistance levels between $4,144 and $4,180. In contrast, silver shows support at $59.10 to $57.70 per troy ounce, with resistance identified at $61.20 to $62.40 for today’s session.

On MCX, he observes that gold is likely to encounter support in the range of Rs 1,42,400-1,41,100, while resistance may be found at Rs 1,44,400-1,45,550. For silver, support is positioned at Rs 2,20,000-2,16,600, whereas resistance is observed at Rs 2,26,000-2,28,800. Jain indicated that long-term investors might contemplate gradually accumulating gold and silver amid the ongoing market downturn, whereas traders ought to exercise patience and await increased stability prior to establishing new positions.