Gold and silver prices commenced trading on the Multi-Commodity Exchange with a downward trajectory on Wednesday, despite the dollar maintaining a weak position. Concurrently, escalating tensions between the U.S. and Iran, along with forthcoming inflation data, have directed market attention toward the implications for interest rates. In the domestic market, silver futures for September 2026 delivery were down Rs 400 to Rs 2,39,081 per kg. Gold futures for October 2026 delivery experienced a decrease of Rs 500, settling at Rs 1,52,101 per 10 grams. Investors are currently anticipating the release of U.S. producer price index data scheduled for Thursday, which will be succeeded by consumer price index data on Friday.

The conflict in the Middle East has intensified, as Iranian-backed Houthis in Yemen have launched strikes on several Saudi cities, thereby drawing another U.S. ally deeper into the war. Simultaneously, U.S. forces targeted multiple Iranian oil tankers, while Iran launched an assault on a U.S. base located in Jordan. Brent crude prices experienced an increase for the fourth consecutive session. Higher crude prices typically contribute to inflationary pressures, as rising energy costs permeate the broader economy. Traders are currently assigning approximately a 60% probability to the likelihood of a Federal Reserve interest-rate increase at the forthcoming policy meeting, as indicated by the CME FedWatch Tool.

Gold is often perceived as a safeguard against inflation; however, elevated interest rates diminish the attractiveness of this non-yielding asset. Spot gold increased by 0.4% to $4,372.19 per ounce, whereas U.S. gold futures decreased by 0.5% to $4,416.00. Among other precious metals, spot silver rose 0.4% to $66.00 an ounce, platinum gained 1% to $1,831.76, while palladium declined 0.3% to $1,344.69. Manoj Kumar Jain indicated that gold is expected to encounter support in the range of $4,400-4,365 per troy ounce, with resistance positioned at $4,474-4,510. For silver, support stands at 65.80-64.70, with resistance at 68.00-69.10 per troy ounce in today’s session.

On the MCX, gold exhibits support levels at Rs 1,51,500-1,50,150 and resistance levels at Rs 1,53,300-1,54,100. Silver is anticipated to encounter support within the range of Rs 2,37,700 to Rs 2,35,000, whereas resistance is projected at Rs 2,41,400 to Rs 2,44,000. Jain indicated that long-term investors may find it advantageous to accumulate gold and silver during market downturns. Conversely, traders are advised to exercise caution and refrain from establishing new long positions in anticipation of the outcomes from the Indian government Cabinet meeting, particularly in light of speculation regarding a potential duty reduction.