Gold prices experienced a modest increase, whereas silver saw a slight decline on the MCX on Friday. This movement was influenced by renewed hostilities between the U.S. and Iran, which propelled oil prices upward, thereby heightening inflation concerns and reinforcing the outlook that interest rates may persist at elevated levels for an extended period. In the domestic market, MCX silver futures for September 2026 delivery experienced a decline of Rs 745, bringing the price to Rs 2,15,268 per kg. Gold futures for August 2026 delivery experienced a decrease of Rs 385, settling at Rs 1,40,733 per 10 grams. For the week, gold has experienced a decline of Rs 3,000, whereas silver has seen a decrease of Rs 7,000.
The recent advancements followed an escalation in military actions by the U.S. and Iran on Thursday, prolonging a week-long conflict that has significantly disrupted the ceasefire established last month. Oil prices have risen approximately 12% this week due to increasing concerns regarding potential supply disruptions amid the intensifying conflict. Elevated crude prices have heightened concerns that inflation may persist, thereby diminishing the attractiveness of non-yielding assets like gold. The precious metal has experienced a decline exceeding 3% thus far this week. On the monetary policy front, Dallas Federal Reserve President Lorie Logan emerged as the first of Fed Chairman Kevin Warsh’s new colleagues to publicly advocate for a rate hike. Fed Vice Chair Philip Jefferson expressed a willingness to consider raising rates should inflation not demonstrate significant improvement in the short term.
In support of the argument for elevated interest rates, recent data indicates a decrease in the number of Americans submitting new claims for unemployment benefits last week. Concurrently, U.S. retail sales experienced a modest increase in June, albeit tempered by the impact of declining petrol prices on revenue at service stations. Spot gold increased by 0.5% to $3,988.57 per ounce, following a decline to its lowest level since July 1. U.S. gold futures for August delivery remained relatively stable at $3,992.70. Among other precious metals, spot silver increased by 0.2% to $55.60 per ounce, while platinum experienced a slight decline of 0.1% to $1,616.10. In contrast, palladium saw a rise of 0.4% to $1,254.62. All three metals were also on track for weekly losses.
Manoj Kumar Jain indicated that on MCX, gold exhibits support levels at Rs 1,39,600-1,38,800 and resistance levels at Rs 1,41,100-1,42,000, whereas silver shows support at Rs 2,14,000-2,11,100 and resistance at Rs 2,18,800-2,21,000. He added that the firm had recommended purchasing silver within the Rs 2,17,000-2,20,000 range on Thursday, with a stop loss set below Rs 2,14,000 and target levels of Rs 2,24,000-2,26,000. Investors maintaining long positions in accordance with the recommendation are urged to diligently follow the established stop loss guidelines.