Gold prices continued their downward trend for a second consecutive session on the MCX on Friday, coinciding with Brent crude surpassing $100 a barrel. This development has heightened inflation concerns and bolstered expectations that interest rates may persist at elevated levels for an extended period. In the domestic market, silver futures for September 2026 delivery were down by Rs 1,120 at Rs 2,18,255 per kg. Gold futures for August 2026 delivery experienced a decline of Rs 185, settling at Rs 1,42,208 per 10 grams. With today’s decrease, precious metals have declined by Rs 8,743 for silver and Rs 3,500 for gold over the course of two consecutive sessions.
U.S. President Donald Trump on Thursday issued a warning of “major military punishment” for Iran and its Houthi allies following the attack by Yemeni fighters on two Saudi oil tankers in the Red Sea. Brent crude surged 7% on Thursday, surpassing $100 a barrel for the first time since May, representing one of its most significant increases since the onset of the conflict. The dollar exhibited strength in conjunction with U.S. Treasury yields, as the benchmark 10-year yield ascended to its peak level since January 2025. The U.S. Federal Reserve is anticipated to maintain the current interest rates in the upcoming week. However, market participants are assigning an 81% probability to a potential rate increase in September, as indicated by the CME FedWatch Tool.
The European Central Bank maintained interest rates at their current level on Thursday, as anticipated, while keeping the door open for a potential increase in September. Elevated interest rates generally diminish the attractiveness of non-yielding gold. Spot gold experienced a decline of 0.1%, trading at $4,042.77 per ounce, which positions it over $120 lower than the two-week peak attained on Wednesday. U.S. gold futures for August delivery experienced a decline of 0.1%, settling at $4,045.60. Bullion remained positioned for a modest weekly gain of 0.6%. Among other precious metals, spot silver fell 0.2% to $57.56 an ounce, platinum declined 0.5% to $1,592.97, and palladium dropped 0.8% to $1,246.72.
Manoj Kumar Jain indicated that gold has support levels ranging from $4,014 to $3,965, while resistance is observed between $4,084 and $4,122 per troy ounce. Silver exhibits support within the range of $57.40 to $56.60, while encountering resistance between $59.10 and $60.00 per troy ounce in the current trading session. Gold on MCX sees support at Rs 1,41,650-1,40,800 and resistance at Rs 1,43,500-1,44,400. Silver has support at Rs 2,16,000-2,14,000 and resistance at Rs 2,22,000-2,24,400. He advised long-term investors to buy gold and silver during the market dip, while traders should steer clear of long positions before next week’s FOMC meeting.