Gold and silver prices experienced a significant decline at the Multi Commodity Exchange on Monday, driven by rising tensions in the Gulf, which in turn led to an increase in oil prices and heightened concerns regarding inflationary pressures. Simultaneously, robust U.S. economic data has heightened worries that interest rates may persist at elevated levels for an extended period. In the domestic market, MCX silver futures for July 2026 delivery experienced a decline of Rs 5,537 (2.23%), bringing the price to Rs 2,43,000 per kg. Gold futures for August 2026 delivery decreased by Rs 1,792 (1.15%), settling at Rs 1,53,802 per 10 grams. In the previous session, silver experienced a significant decline of nearly 7%, while gold saw a decrease of over 2%.
Investor sentiment was influenced by events occurring in the Middle East. As reported, U.S. President Donald Trump indicated on Sunday that he would advise Israeli Prime Minister Benjamin Netanyahu against retaliation following Iran’s missile strikes on Israeli targets, which were in response to an attack near Beirut. Gold has long been considered a safeguard against inflation; however, increasing interest rates often diminish the attractiveness of this non-yielding asset. Markets are currently reflecting expectations for a Federal Reserve rate hike before the year concludes, with CME Group’s FedWatch tool suggesting a 51% likelihood of such a move by December.
In the international market, spot gold decreased by 0.2% to $4,321.49 per ounce as of 0124, following a decline of approximately 3% on Friday, marking its lowest level since March 24. Among other precious metals, spot silver decreased by 0.4% to $67.52 per ounce, platinum declined by 0.2% to $1,773.69, whereas palladium defied the trend and increased by 0.5% to $1,231.51 per ounce. Jigar Trivedi of IndusInd Securities indicated that MCX Gold August futures might face downward pressure, potentially declining to Rs 1,54,000 per 10 grams due to unfavourable global signals. On the upside, he identifies Rs 1,56,000 per 10 grams as a crucial level to monitor for intraday trading on Monday.
Manoj Kumar Jain indicated that silver has support in the $66.60-$64.00 per troy ounce range, while resistance is positioned at $71.40-$74.00 per troy ounce for the current session. On MCX, he identifies gold support levels at Rs 1,54,400-1,53,150 and resistance levels at Rs 1,56,600-1,57,400. Silver support stands at Rs 2,42,400-2,36,650, with resistance at Rs 2,53,500-2,57,700. Jain suggests purchasing silver at Rs 2,38,000, setting a stop loss at Rs 2,32,000, and aiming for a target of Rs 2,51,000.