Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Friday as renewed tensions in the Middle East weighed on hopes of a U.S.-Iran peace agreement, while concerns over inflation and higher interest rates also pressured sentiment.
In the domestic market, MCX silver futures for July 2026 delivery were down Rs 5,629 (2%) to Rs 2,59,167 per kg. Gold futures for August 2026 delivery slipped Rs 1,334 (1%) to Rs 1,58,213 per 10 grams. In the previous session, silver and gold ended lower.
Geopolitical tensions remained elevated after the Iran-backed Hezbollah militia rejected a new ceasefire proposal in Lebanon. Israel also said it would not withdraw its troops from the country, dealing a setback to U.S. President Donald Trump's efforts to end the conflict and advance peace talks with Tehran.
Although gold is traditionally viewed as a hedge against inflation, rising interest rates tend to reduce the appeal of the non-yielding asset. Markets are currently pricing in a Federal Reserve rate hike before the end of the year, with CME Group's FedWatch tool indicating a 51% probability of a move by December.
In the international market, Spot gold fell 0.5% to $4,452.20 per ounce as of 0225 GMT, taking its decline for the week so far to about 1.8%. U.S. gold futures for August delivery slipped 0.6% to $4,478.50. Among other precious metals, spot silver dropped 1.4% to $72.89 per ounce, platinum fell 1.1% to $1,878.68, and palladium declined 1.7% to $1,298.45. All three metals were also headed for weekly losses.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are expected to remain volatile in the current session amid fluctuations in crude oil prices, movements in the dollar index and hopes surrounding a US-Iran peace deal.
According to Jain, gold has support at $4,467-$4,420 per troy ounce and resistance at $4,535-$4,580 per troy ounce. Silver has support at $72.00-$69.00 per troy ounce, while resistance is seen at $76.60-$78.80 per troy ounce.
On the MCX, gold is likely to find support in the Rs 1,58,800-Rs 1,58,150 range and face resistance between Rs 1,60,300 and Rs 1,61,100. Silver has support at Rs 2,61,000-Rs 2,57,700, while resistance is placed at Rs 2,68,000-Rs 2,71,300.
Jain advised investors to book profits in gold and silver on every rise until gold closes above $4,680 per troy ounce and silver closes above $80 per troy ounce.
Gold rates in physical markets
Gold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 1,14,592/8 grams while pure gold (24 carat) prices stand at Rs 1,25,000/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,14,472/8 grams while pure gold (24 carat) prices stand at Rs 1,24,880/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,15,832/8 grams while pure gold (24carat) prices stand at Rs 1,26,368/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,14,472/8 grams while pure gold (24 carat) prices stand at Rs 1,24,880/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
