Gold prices experienced a decline, while silver saw an uptick on the MCX on Friday, buoyed by a weaker U.S. dollar. Despite this, both metals are poised for a weekly downturn, driven by apprehensions that rising U.S.-Iran tensions may fuel inflationary pressures and maintain the U.S. Federal Reserve’s hawkish stance. In the domestic market, silver futures for September 2026 delivery increased by Rs 613, reaching Rs 2,26,990 per kg. Gold futures for August 2026 delivery declined by Rs 440, settling at Rs 1,44,860 per 10 grams. For the week, silver has experienced a decline exceeding 3%, resulting in a loss of over Rs 6,000, whereas gold has decreased by approximately Rs 900.
The dollar remained close to a one-week low, resulting in a decrease in the price of dollar-denominated gold for purchasers utilising alternative currencies. Meanwhile, oil prices were poised for weekly gains as the United States and Iran persisted in their exchanges of strikes. The Iranian armed forces initiated assaults on U.S. military infrastructure located in Gulf states on Thursday, a direct reaction to U.S. airstrikes targeting Iran’s southern coastal and eastern provinces. The recent escalation has intensified inflation apprehensions and bolstered expectations that the U.S. Federal Reserve may increase interest rates within the year. According to CME’s FedWatch tool, markets are currently assigning a 64% probability to a September rate hike, an increase from approximately 54% just a week prior.
Gold is commonly regarded as a safeguard against inflation; however, elevated interest rates typically diminish its attractiveness, as the metal does not provide any yield. Spot gold increased by 0.2% to $4,128.92 per ounce; however, it remains on track for a weekly decline exceeding 1%. U.S. gold futures for August delivery remained relatively stable at $4,139.50 per ounce. Among other precious metals, spot silver gained 0.8% to $60.46 an ounce, platinum advanced 1.6% to $1,636.68, and palladium climbed 1.6% to $1,267. Despite Friday’s gains, all three metals were set to record weekly losses. Gold is anticipated to encounter support within the $4,110-4,074 per troy ounce range, whereas resistance is projected at $4,165-4,200. Silver exhibits support in the range of $59.80 to $58.50 per troy ounce, while resistance is identified between $61.40 and $63.00.
On the MCX, gold exhibits support levels at Rs 1,44,400-1,43,650 and resistance levels at Rs 1,46,150-1,47,000. Silver is expected to encounter support within the range of Rs 2,24,000 to Rs 2,21,000, whereas resistance is anticipated at Rs 2,29,100 to Rs 2,32,000. In light of the prevailing uncertainty regarding the U.S.-Iran peace deal as the weekend approaches, it is advisable to consider realising gains from current long positions in both gold and silver during any significant upward movement.