Gold prices drop 9,500/10 gram in 4 days; silver down Rs 7,700/kg as US Fed rate hike bets increase. Buy, sell or hold?

Gold and silver prices opened sharply lower on the Multi Commodity Exchange on Monday, extending losses for a fourth straight session, as U.S. Federal Reserve Chair Kevin Warsh's comments raised expectations that interest rates may need to rise.

In the domestic market, MCX silver futures for September 2026 delivery were down Rs 3,635 to Rs 2,38,809 per kg. Gold futures for October 2026 delivery fell by Rs 2,700 to Rs 1,53,640 per 10 grams. Gold has fallen Rs 5,000/10 grams in 4 straight sessions. Gold has tanked Rs 9,500 in 4 days, while the white metal is down Rs 7,700 in three sessions.

The U.S. central bank will "have work to do" if policymakers do not gain sufficient confidence that inflation is moving towards the 2% target, Warsh said on Friday. His comments came closer than before to acknowledging that interest rate hikes could be required to bring down price pressures.


Markets are now pricing in a 57% chance of a rate hike at the Fed's September meeting, up from 30% before Warsh's remarks, according to the CME FedWatch tool. Higher interest rates tend to weigh on gold as they make holding the non-yielding asset less attractive.

Investors will also be watching a series of U.S. labour market data due this week, including job openings, the ADP employment report, weekly jobless claims and nonfarm payrolls.

Meanwhile, Iran on Friday condemned new U.S. economic sanctions as "state terrorism". The country's supreme leader also said acts that could harm "social cohesion" were being banned, amid concerns that further financial pressure could trigger unrest at home.

Also read: Gold prices jump 7% to log best weekly gain in 8 months. Start of another yellow metal bull run?

Gold, silver international prices

Spot gold was flat at $4,455.29 per ounce after touching its lowest level since August 19 earlier in the session. U.S. gold futures for December delivery fell 0.6% to $4,504.90.

Among other precious metals, spot silver was flat at $66.34 per ounce, while platinum rose 0.1% to $1,822.46. Palladium gained 0.2% to $1,424.89.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said gold has support at $4,440-4,400 per troy ounce, while resistance is seen at $4,540-4,585. For silver, support is at $64.40-63.00 per troy ounce, with resistance at $67.70-69.10.

On the MCX, gold has support at Rs 1,55,000-1,53,350 and resistance at Rs 1,57,500-1,58,850, while silver has support at Rs 2,40,000-2,37,700 and resistance at Rs 2,45,000-2,48,500.

He advised traders to wait for some stability before taking fresh positions in gold and silver, while long-term investors could accumulate the metals in a staggered manner during the market fall.

Read more: Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,16,152/8 grams while pure gold (24 carat) prices stand at Rs 1,26,704/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,16,032/8 grams while pure gold (24 carat) prices stand at Rs 1,26,584/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,16,032/8 grams while pure gold (24 carat) prices stand at Rs 1,26,584/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,16,032/8 grams while pure gold (24carat) prices stand at Rs 1,26,584/8 grams.

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