Gold and silver prices commenced the trading session on the Multi Commodity Exchange with a notable decline on Monday, marking the fourth consecutive session of losses. This downturn follows remarks from U.S. Federal Reserve Chair Kevin Warsh, which have heightened expectations regarding a potential increase in interest rates. In the domestic market, silver futures for September 2026 delivery experienced a decline of Rs 3,635, bringing the price to Rs 2,38,809 per kg. Gold futures for October 2026 delivery decreased by Rs 2,700, settling at Rs 1,53,640 per 10 grams. Gold has declined by Rs 5,000 per 10 grams over the course of four consecutive sessions. Gold has declined by Rs 9,500 over the past four days, whereas the white metal has experienced a drop of Rs 7,700 in three sessions.
The U.S. central bank will “have work to do” if policymakers do not gain sufficient confidence that inflation is moving toward the 2% target, Warsh stated on Friday. His comments approached a recognition that interest rate hikes may be necessary to alleviate price pressures. Markets are currently assigning a 57% probability to a rate hike at the Federal Reserve’s September meeting, an increase from the 30% likelihood observed prior to Warsh’s comments, as indicated by the CME FedWatch tool. Elevated interest rates typically exert downward pressure on gold, as they diminish the appeal of holding this non-yielding asset. Investors will be closely monitoring a range of U.S. labour market indicators set to be released this week, which encompass job openings, the ADP employment report, weekly jobless claims, and nonfarm payrolls.
Meanwhile, Iran on Friday characterised the latest U.S. economic sanctions as “state terrorism”. The nation’s supreme leader additionally stated that actions potentially detrimental to “social cohesion” are being prohibited, in light of worries that increased financial strain could incite domestic unrest. Spot gold remained unchanged at $4,455.29 per ounce after reaching its lowest point since August 19 earlier in the session. U.S. gold futures for December delivery experienced a decline of 0.6%, settling at $4,504.90. Among other precious metals, spot silver remained unchanged at $66.34 per ounce, while platinum experienced a modest increase of 0.1% to $1,822.46. Palladium experienced an increase of 0.2%, reaching a value of $1,424.89.
Manoj Kumar Jain indicated that gold has support in the range of $4,440 to $4,400 per troy ounce, while resistance is observed between $4,540 and $4,585. For silver, support is positioned at $64.40-63.00 per troy ounce, while resistance is observed at $67.70-69.10. On the MCX, gold exhibits support levels at Rs 1,55,000-1,53,350 and resistance levels at Rs 1,57,500-1,58,850. In contrast, silver shows support at Rs 2,40,000-2,37,700 and resistance at Rs 2,45,000-2,48,500. He advised traders to exercise patience and await a period of stability before entering new positions in gold and silver. Meanwhile, long-term investors might consider accumulating these metals gradually during market declines.
