Gold and silver prices commenced the trading session on the Multi Commodity Exchange on Monday with a decline, interrupting a two-day upward trend. This shift comes as investors assess the latest tensions between Iran and the US, ongoing developments in the Middle East, and the possible repercussions for inflation and interest rates. In the domestic market, MCX silver futures for September 2026 delivery experienced a decrease of Rs 1,600, settling at Rs 2,39,008 per kg. Gold futures for October 2026 delivery declined by Rs 1,331, settling at Rs 1,52,171 per 10 grams. Previously, the two metals experienced gains over two consecutive sessions. Over the weekend, Iran and the United States exchanged new threats. US President Donald Trump cautioned that Iran might encounter economic collapse or a forfeiture of its leadership if a deal is not achieved, whereas the Iranian military asserted it would react severely to any further aggression.

Oil prices experienced a decline as investors evaluated a rebound in Saudi Arabian shipments, notwithstanding ongoing assaults by Yemen’s Houthis, which have heightened regional tensions. Meanwhile, the prospect of a renewed global interest rate-tightening cycle is taking shape as several major central banks elevate rates and suggest that additional increases may be necessary to mitigate inflation exacerbated by the Iran war. The Bank of Japan has joined the ranks of major central banks tightening monetary policy, having implemented rate increases on Friday, subsequent to the Federal Reserve’s actions earlier in the week and the European Central Bank’s adjustments the week prior. Minneapolis Fed President Neel Kashkari stated that inflation continues to be excessively elevated across all sectors of the US economy.

Gold has long been perceived as a safeguard against inflation; however, elevated interest rates may dampen demand for this non-yielding asset by enhancing the appeal of interest-bearing investments. Spot gold remained relatively unchanged at $4,379.74 per ounce, following a peak reached on Friday that marked a one-week high. US gold futures for December delivery decreased by 0.1%, settling at $4,419.40. In other precious metals, spot silver increased by 0.8% to $66.76 per ounce, while platinum saw a rise of 0.2% to $1,804.33. Palladium experienced an increase of 0.7%, reaching a price of $1,311.65. Manoj Kumar Jain indicated that gold is expected to encounter support in the range of $4,385-$4,350 per troy ounce, whereas resistance is anticipated between $4,440-$4,484. For silver, support is positioned at $65.50-$64.40 per troy ounce, while resistance is observed at $68.00-$69.10.

On the MCX, Jain indicated that gold has support levels at Rs 1,51,300 to Rs 1,50,200, while resistance is positioned at Rs 1,55,000 to Rs 1,56,100. For silver, support is observed at Rs 2,38,800-Rs 2,35,500 and resistance at Rs 2,44,000-Rs 2,47,700. Jain suggested purchasing gold during price declines in the range of Rs 1,51,500 to Rs 1,50,000, with a stop loss set beneath Rs 1,49,600, aiming for a target between Rs 1,55,000 and Rs 1,56,100. For silver, he recommended purchasing in the range of Rs 2,36,000 to Rs 2,34,000, with a stop loss set beneath Rs 2,29,000 and a target between Rs 2,44,000 and Rs 2,47,000.