Gold prices dip Rs 3,200/10 gram; silver falls Rs 6,700/kg as high oil prices raise rate hike bets. Time to sell?

Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Monday as rising oil prices stoked inflation concerns and strengthened expectations of further Federal Reserve rate hikes.

In the domestic market, MCX silver futures for September 2026 delivery were down by Rs 6,661 to Rs 2,28,035 per kg. Gold futures for October 2026 delivery dipped by Rs 3,214 to Rs 1,47,667 per 10 grams.

The combination of higher bond yields and rising oil prices continues to weigh on gold. Oil prices climbed on mixed signals around supply flows, keeping inflation concerns at the forefront for investors.


Iran said diplomacy was the only way to resolve its conflict with the United States and Israel after US President Donald Trump said he had rejected an Iranian proposal to reopen the Strait of Hormuz and end the fighting. Oil prices subsequently rebounded more than 1%.

Traders are currently pricing in a 66% chance of another US rate hike in October, according to CME's FedWatch Tool. Investors will be watching a series of US labour market and inflation indicators this week, including job openings, the ADP employment report, the Personal Consumption Expenditures (PCE) price index and nonfarm payrolls.

Gold, silver international prices

Spot gold was down 1.5% at $4,223.95 per ounce as of 0117 GMT, while US gold futures fell 1.5% to $4,257.90.

Among other precious metals, spot silver fell 2.6% to $62.64 per ounce, while platinum declined 2.1% to $1,741.45. Palladium also dropped 2.1% to $1,239.95.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week, amid fluctuations in crude oil prices and the dollar index, geopolitical tensions and developments around the US-Iran peace talks.

He said gold has support at $4,284-4,260 per troy ounce, while resistance is seen at $4,355-4,388. For silver, support is at $63.80-63.00 per troy ounce, with resistance at $65.50-66.60.

Also read: Rs 6 lakh cr rout! 6 key triggers behind today's market meltdown

On the MCX, Jain sees support for gold at Rs 1,50,150-1,49,600 and resistance at Rs 1,51,400-1,52,000. For silver, support is at Rs 2,33,000-2,30,400, while resistance is at Rs 2,36,600-2,38,800.

Jain advised waiting for updates on the US-Iran peace talks before taking fresh positions in gold and silver. He suggested those holding long positions in gold maintain a strict stop-loss below Rs 1,49,600 and in silver below Rs 2,30,000, on a daily closing basis.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,10,240/8 grams while pure gold (24 carat) prices stand at Rs 1,20,256/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,10,120/8 grams while pure gold (24 carat) prices stand at Rs 1,20,136/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,10,120/8 grams while pure gold (24 carat) prices stand at Rs 1,20,136/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,10,120/8 grams while pure gold (24carat) prices stand at Rs 1,20,136/8 grams.

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