Gold and silver prices commenced the trading session on the Multi Commodity Exchange with notable declines on Tuesday, influenced by a robust U.S. dollar that dampened demand. Concurrently, investors remained vigilant regarding the ongoing U.S.-Iran peace negotiations and were reevaluating the trajectory of U.S. interest rates. In the domestic market, MCX silver futures for July 2026 delivery experienced a decline of Rs 7,185 (3%), bringing the price to Rs 2,27,125 per kg. Gold futures for August 2026 delivery decreased by Rs 1,342, settling at Rs 1,46,776 per 10 grams. In the previous session, the two increased by 1%.
The U.S. dollar maintained its position near the one-year high achieved late last week, resulting in increased costs for gold for holders of alternative currencies. Simultaneously, oil prices rebounded following the significant drop observed on Monday. Increased oil prices have reignited worries regarding inflation, bolstering the belief that interest rates may stay high. Gold is frequently regarded as a safeguard against inflation; however, elevated interest rates typically diminish its appeal, as the metal does not provide any yield.
Traders currently assign an 88% probability to a Federal Reserve rate hike in December, a notable increase from the 61% probability observed prior to last week’s Fed meeting. In the international market, spot gold declined by 0.7% to $4,162.60 per ounce, following an earlier decrease of nearly 1% during the session. U.S. gold futures for August delivery experienced a decline of 0.5%, settling at $4,180.50. Among other precious metals, spot silver dropped 1.8% to $64.02 per ounce, platinum declined 1.6% to $1,651.79, and palladium eased 0.7% to $1,256.27.
Manoj Kumar Jain indicates that gold has support levels at Rs 1,47,400-1,46,650 and resistance levels at Rs 1,49,000-1,49,850. Silver exhibits support levels ranging from Rs 2,31,400 to Rs 2,28,800, while resistance is observed between Rs 2,37,700 and Rs 2,40,400. Jain advises purchasing gold during price declines within the Rs 1,47,400-1,46,600 range, setting a stop loss at Rs 1,45,850, and aiming for upside targets of Rs 1,48,500-1,49,100.