Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Wednesday as a stronger dollar and growing expectations of U.S. interest rate hikes outweighed optimism surrounding falling oil prices as the Strait of Hormuz gradually re-opens.
In the domestic market, MCX silver futures for July 2026 delivery were down Rs 3,256 (1.4%) to Rs 2,22,578 per kg. Gold futures for August 2026 delivery declined by Rs 2,159 to Rs 1,44,370 per 10 grams. In the previous session, the two declined up to 0.25%.
Gold, traditionally viewed as a hedge against inflation, tends to lose some of its appeal when interest rates rise because it does not offer any yield. Adding to the pressure, the U.S. dollar climbed to its highest level in more than a year, making bullion more expensive for buyers holding other currencies.
Market expectations have also shifted sharply following last week's Federal Reserve meeting. Traders are now pricing in three interest rate hikes from the U.S. central bank this year, compared with expectations of just one hike before the meeting, according to the CME FedWatch Tool.
In the international market, spot gold dropped 1% to $4,067.51 per ounce after earlier touching its weakest level since June 11. U.S. gold futures for August delivery fell 1.6% to $4,083.90. Among other precious metals, spot silver eased 0.9% to $61.44 per ounce, platinum fell 0.8% to $1,638, while palladium declined 0.8% to $1,227.41.
How should you trade gold?
According to Manoj Kumar Jain of Prithvi Finmart, gold has support in the $4,089-$4,040 per troy ounce range, while resistance is seen at $4,185-$4,220 per troy ounce. Silver has support at $60.00-$58.40 per troy ounce and resistance at $63.60-$65.20 per troy ounce during the session.
On MCX, gold is expected to find support at Rs 1,45,200-Rs 1,44,000 and face resistance at Rs 1,47,200-Rs 1,48,100. Silver has support at Rs 2,21,000-Rs 2,16,600, while resistance is placed at Rs 2,28,800-Rs 2,31,200.
Jain advised investors to avoid initiating fresh buying positions in gold and silver ahead of the release of U.S. GDP data.
Gold rates in physical markets
Gold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 1,06,152/8 grams while pure gold (24 carat) prices stand at Rs 1,15,792/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,06,032/8 grams while pure gold (24 carat) prices stand at Rs 1,15,672/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,08,472/8 grams while pure gold (24carat) prices stand at Rs 1,18,336/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,06,032/8 grams while pure gold (24 carat) prices stand at Rs 1,15,672/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
