Gold and silver prices commenced the trading session on the Multi Commodity Exchange with a notable decline on Monday, influenced by increasing oil prices that heightened inflation apprehensions and bolstered anticipations of additional rate hikes by the Federal Reserve. In the domestic market, MCX silver futures for September 2026 delivery experienced a decline of Rs 6,661, bringing the price to Rs 2,28,035 per kg. Gold futures for October 2026 delivery declined by Rs 3,214, settling at Rs 1,47,667 per 10 grams. The interplay of elevated bond yields and increasing oil prices persists in exerting downward pressure on gold. Oil prices increased amid conflicting indications regarding supply flows, maintaining inflation concerns as a primary focus for investors.

Iran asserted that diplomacy remains the sole avenue for resolving its conflict with the United States and Israel, following US President Donald Trump’s announcement of his rejection of an Iranian proposal aimed at reopening the Strait of Hormuz and ceasing hostilities. Oil prices subsequently experienced a rebound exceeding 1%. Traders are currently factoring in a 66% probability of an additional US rate hike in October, as indicated by CME’s FedWatch Tool. Investors will be closely monitoring a range of US labour market and inflation metrics this week, which encompass job openings, the ADP employment report, the Personal Consumption Expenditures price index, and nonfarm payrolls.

Spot gold experienced a decline of 1.5%, trading at $4,223.95 per ounce as of 0117, while US gold futures also decreased by 1.5%, settling at $4,257.90. Among other precious metals, spot silver decreased by 2.6% to $62.64 per ounce, while platinum experienced a decline of 2.1% to $1,741.45. Palladium also declined by 2.1% to $1,239.95. Manoj Kumar Jain anticipates that gold and silver prices will experience volatility this week, influenced by fluctuations in crude oil prices and the dollar index, as well as geopolitical tensions and developments concerning the US-Iran peace talks. He stated that gold has support in the range of $4,284-4,260 per troy ounce, while resistance is observed at $4,355-4,388.

For silver, support is positioned between $63.80 and $63.00 per troy ounce, while resistance is observed in the range of $65.50 to $66.60. On the MCX, Jain identifies support for gold at Rs 1,50,150-1,49,600 and resistance at Rs 1,51,400-1,52,000. For silver, support is positioned at Rs 2,33,000-2,30,400, whereas resistance is observed at Rs 2,36,600-2,38,800. Jain recommended postponing any new investments in gold and silver until further developments arise from the US-Iran peace negotiations. He advised that individuals with long positions in gold should uphold a stringent stop-loss beneath Rs 1,49,600, and for silver, below Rs 2,30,000, based on daily closing values.