Gold and silver prices commenced robustly on the Multi Commodity Exchange on Monday, bolstered by a depreciating dollar and declining oil prices, as investors assessed the potential for progress in the U.S.-Iran peace discussions. In the domestic market, silver futures for July 2026 delivery increased by Rs 5,042 or 1.8%, reaching Rs 2,76,888 per kg. Gold futures for June 2026 delivery increased by Rs 821, reaching Rs 1,59,500 per 10 grams. In the previous session, silver and gold experienced slight declines. On Saturday, U.S. President Donald Trump stated that Washington and Tehran had “largely negotiated” a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz, a route that handled nearly one-fifth of global oil and liquefied natural gas shipments before the conflict began.
Oil’s decline to a two-week low also supported increased buying activity. Oil prices exert a significant impact on inflation expectations. Elevated crude can fuel inflation and maintain interest rates at elevated levels for an extended period. Gold is regarded as a hedge against inflation; however, elevated interest rates typically exert downward pressure on this non-yielding asset. In the international market, spot gold experienced an increase of 1.1%, reaching $4,560.09 per ounce, whereas U.S. gold futures for June delivery saw a rise of 0.9%, climbing to $4,562.10. Among other precious metals, spot silver surged 3.1% to $77.81 per ounce. Platinum increased by 2.1% to $1,963.30, whereas palladium rose by 2.4% to $1,381.82.
Manoj Kumar Jain indicated that gold and silver prices are anticipated to exhibit volatility this week, influenced by the fluctuations in crude oil prices and the optimism surrounding a potential US-Iran peace agreement. Jain indicates that gold is positioned with support ranging from $4,500 to $4,467 per troy ounce, while facing resistance between $4,555 and $4,600. In contrast, silver shows support levels at $74.20 to $72.00 and resistance at $78.80 to $80.40 per troy ounce in the current session. On MCX, he indicated that gold has support at Rs 1,57,700-Rs 1,56,650 and resistance at Rs 1,59,850-Rs 1,61,100. Silver has established support in the range of Rs 2,70,000 to Rs 2,65,500, while resistance is noted between Rs 2,76,000 and Rs 2,81,000.
Jain noted that Prithvi Finmart had advised purchasing silver within the Rs 2,71,000-Rs 2,67,000 range in its Tuesday morning note, setting a stop loss beneath Rs 2,63,000 and aiming for targets of Rs 2,81,000-Rs 2,85,000. Investors maintaining long positions in accordance with the recommendation are urged to adhere to the established stop loss and realise profits as they approach the target levels. He further suggested purchasing gold within the range of Rs 1,58,500 to Rs 1,57,700, with a stop loss set below Rs 1,56,650 and targets of Rs 1,59,350 to Rs 1,60,300.