Gold prices experienced an upward movement for the second consecutive day on the MCX on Tuesday, influenced by indications of revitalised diplomatic initiatives between the U.S. and Iran. Investor sentiment, however, remained cautious following threats from Yemen’s Houthis to impose a naval blockade on Saudi Arabia, which has raised concerns about a potential increase in crude prices. In the domestic market, silver futures for September 2026 delivery increased by Rs 3,109, reaching Rs 2,21,509 per kg. Gold futures for August 2026 delivery increased by Rs 1,000, reaching Rs 1,42,390 per 10 grams. With today’s increase, the two have risen for a second consecutive session. Oil prices declined as markets weighed reports of mediation efforts between Washington and Tehran against new exchanges of hostilities between the two parties, alongside the Houthis’ threat to impose a blockade on Saudi Arabia.
A successful Houthi blockade of the Bab el-Mandeb Strait could disrupt one of the world’s key oil shipping routes, potentially sending crude prices sharply higher, disrupting fuel supplies and adding pressure on the global economy. The announcement arrived notwithstanding signals that Iran and the U.S. are seeking to rejuvenate diplomatic discussions aimed at averting further escalation following a sequence of attacks that have significantly compromised the interim agreement established last month. Iran’s Foreign Ministry indicated that mediators have put forth “proposals” to Tehran, implying that diplomatic engagement remains ongoing, though additional details were not disclosed. The recent escalation in the Middle East has driven oil prices to their highest level in over a month as of Monday.
The resulting inflation concerns have prompted a growing number of policymakers to argue that interest rates may need to remain elevated, setting the stage for a closely monitored debate at the Federal Reserve’s upcoming policy meeting. Elevated interest rates generally exert downward pressure on gold, as they raise the opportunity cost associated with holding the non-yielding precious metal. Spot gold increased by 0.5% to $4,023.56 per ounce as of 0146, while U.S. gold futures for August delivery saw a rise of 0.3% to $4,028. Among other precious metals, spot silver increased by 0.9% to $56.93 per ounce, platinum decreased by 0.2% to $1,591.22, while palladium rose by 0.3% to $1,256.68.
According to Manoj Kumar Jain, gold has support at 3,989-3,945 per troy ounce, while resistance is seen at 4,040-4,074. Silver exhibits support levels ranging from $56.20 to $55.50 per troy ounce, while resistance is observed between $57.70 and $58.50. On the MCX, gold exhibits support levels at 1,40,850-1,40,400 and resistance levels at 1,42,000-1,43,650. In contrast, silver shows support at 2,16,000-2,14,400 and resistance at 2,20,000-2,23,100. He advised long-term investors to accumulate gold and silver through SIPs during the current correction, while traders should book profits on every rise and maintain a stop loss below the stated support levels on a closing basis.