Gold and silver prices commenced the trading session on the Multi Commodity Exchange of India with a notable decline on Monday, influenced by the strength of the U.S. dollar. Concurrently, escalating tensions in the Strait of Hormuz contributed to an increase in oil prices, reigniting concerns regarding inflation. On the geopolitical front, Donald Trump stated on Sunday that U.S. forces had seized an Iranian cargo vessel attempting to breach its blockade. Iran has decisively excluded the possibility of engaging in a second round of peace negotiations, even in light of admonitions regarding potential additional airstrikes from Washington.
In the domestic market, MCX silver futures for May 2026 delivery declined by Rs 3,945, representing a decrease of 1.5%, settling at Rs 2,53,198 per kg. Gold futures for June 2026 delivery experienced a decrease, dropping Rs 1,590, or 1%, to Rs 1,53,018 per 10 grams. Globally, gold prices continued to face downward pressure. Spot gold declined by 0.4% to $4,809.71 per ounce as of 0155, following a drop to its lowest level since April 13 earlier in the session. U.S. gold futures for June delivery experienced a decline of 1%, settling at $4,829.40. Among other precious metals, spot silver declined by 0.5%, settling at $80.36 per ounce.
Manoj Kumar Jain noted that precious metals are experiencing significant volatility; however, it is anticipated that key support levels will remain intact in the short term. He anticipates that silver will maintain a level above $64 per troy ounce and that gold will stabilize around $4,550 per troy ounce on a weekly closing basis, notwithstanding the volatility influenced by shifts in the dollar index, crude oil prices, and progress regarding a potential US-Iran peace agreement. He added that gold has immediate support in the range of 4,840 to 4,770 per troy ounce, with resistance seen at 4,910 to 4,955. Silver, in the current session, exhibits support levels between $78.80 and $76.60, with resistance identified at $84 to $86.20 per troy ounce.
On the domestic front, he observed that gold has support at Rs 1,53,350 to Rs 1,52,000 and resistance at Rs 1,55,500 to Rs 1,56,800. Silver exhibits support levels ranging from Rs 2,53,000 to Rs 2,48,800, while resistance is observed between Rs 2,61,000 and Rs 2,66,000. Jain indicated that the buy-on-dips strategy employed last week in both gold and silver yielded robust outcomes. He maintains his recommendation to purchase gold during price dips, provided it remains above Rs 1,47,700 on a closing basis, with potential upside targets ranging from Rs 1,57,000 to Rs 1,59,000. A comparable strategy is recommended for silver, advocating a buy-on-dips position as long as prices remain above Rs 2,45,000, with target levels set between Rs 2,61,000 and Rs 2,66,000.