Gold and silver prices commenced the day on a downward trajectory on the MCX this Friday, as investors capitalised on profits following a significant increase observed in the preceding sessions. The decline occurred notwithstanding the moderate US inflation figures, which further diminished anticipations of a Federal Reserve interest rate increase in September. In the domestic market, silver futures for September 2026 delivery decreased by Rs 2,537, settling at Rs 2,32,910 per kg. Gold futures for October 2026 delivery decreased by Rs 1,162, settling at Rs 1,52,304 per 10 grams. Silver has experienced a decrease of Rs 5,000 over the past two days, whereas gold has seen a reduction of Rs 2,600 per gram.

In July, US producer prices remained stable, reflecting a decrease in goods prices alongside a slight increase in the cost of services. The data reinforced anticipations that the Fed may opt to maintain interest rates at their current levels in the upcoming month. The report from the US Labour Department was released a day subsequent to data indicating that consumer inflation remained subdued last month. On the geopolitical front, Washington on Thursday threatened to maintain a naval blockade of Iran indefinitely, thereby intensifying economic pressure on Tehran as ceasefire discussions reached an impasse.

Demand for gold has exhibited resilience, bolstered by economic and political developments that enhance investor interest in the metal worldwide, especially among central banks. The Bank of Korea held 679,765 shares of SPDR Gold Trust, valued at approximately $250.4 million at the conclusion of June, as per a US SEC filing. This marked its first disclosed gold investment since acquiring physical gold in 2013. Spot gold decreased by 0.5% to $4,330.37 per ounce as of 0103, while US gold futures for December delivery declined by 0.8% to $4,386.80. Bullion reached its peak since June 5 on Thursday, only to conclude the session with a decline of 1.3%, effectively erasing its weekly gains.

Among other precious metals, spot silver declined by 0.8% to $63.92 per ounce. Platinum experienced a decrease of 1%, settling at $1,700.60, whereas palladium saw a slight decline of 0.3%, reaching $1,303.25. Both platinum and palladium reached their lowest levels since August 4. Jigar Trivedi indicates that MCX Gold is likely to experience profit booking, with a support level of Rs 1,54,000 per gram for the day. Silver prices maintained their upward trajectory as investment demand increased. MCX Silver September may ascend to Rs 2,40,000 per kg, tho the potential for profit booking remains a consideration.