Gold prices dip Rs 3,000/10 gram this week, silver plunges Rs 7,300/kg as oil rally raises rate hike bets. What’s next?

Gold prices edged higher while silver traded slightly lower on the MCX on Friday as renewed fighting between the U.S. and Iran lifted oil prices, stoking inflation concerns and strengthening expectations that interest rates could remain higher for longer.

In the domestic market, MCX silver futures for September 2026 delivery were down Rs 745 at Rs 2,15,268 per kg. Gold futures for August 2026 delivery declined by Rs 385 to Rs 1,40,733 per 10 grams. For the week, gold has declined Rs 3,000, while silver has declined of Rs 7,000.

The latest gains came after the U.S. and Iran intensified military strikes on Thursday, extending a week-long conflict that has largely undone last month's truce.


Oil prices have climbed about 12% this week as concerns over potential supply disruptions mounted amid the escalating conflict. Higher crude prices have raised worries that inflation could remain sticky, reducing the appeal of non-yielding assets such as gold. The precious metal has fallen more than 3% so far this week.

On the monetary policy front, Dallas Federal Reserve President Lorie Logan became the first of Fed Chairman Kevin Warsh's new colleagues to publicly call for a rate hike. Fed Vice Chair Philip Jefferson also indicated he would be open to raising rates if inflation fails to show meaningful improvement in the near term.

Supporting the case for higher rates, the number of Americans filing new unemployment benefit claims declined last week, while U.S. retail sales edged higher in June, although lower gasoline prices weighed on receipts at service stations.

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Spot gold rose 0.5% to $3,988.57 per ounce after earlier falling to its lowest level since July 1. U.S. gold futures for August delivery were little changed at $3,992.70.

Among other precious metals, spot silver rose 0.2% to $55.60 per ounce, platinum slipped 0.1% to $1,616.10 and palladium gained 0.4% to $1,254.62. All three metals were also headed for weekly losses.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said that on MCX, gold has support at Rs 1,39,600-1,38,800 and resistance at Rs 1,41,100-1,42,000, while silver has support at Rs 2,14,000-2,11,100 and resistance at Rs 2,18,800-2,21,000.

He added that the firm had recommended buying silver in the Rs 2,17,000-2,20,000 range on Thursday with a stop loss below Rs 2,14,000 and target levels of Rs 2,24,000-2,26,000. Investors holding long positions based on the recommendation have been advised to strictly adhere to the prescribed stop loss.

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Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,05,192/8 grams while pure gold (24 carat) prices stand at Rs 1,14,672/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,05,072/8 grams while pure gold (24 carat) prices stand at Rs 1,14,624/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,05,192/8 grams while pure gold (24 carat) prices stand at Rs 1,14,760/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,05,072/8 grams while pure gold (24 carat) prices stand at Rs 1,14,624/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)