Gold prices fall to Rs 1.44 lakh/10 gram; silver dips Rs 6,300 this week as Iran war raises inflation worries. What’s next?

Gold prices slipped while silver advanced on the MCX on Friday, finding support from a weaker U.S. dollar even as the two remained on track for a weekly decline amid concerns that escalating U.S.-Iran tensions could stoke inflation and keep the U.S. Federal Reserve on a hawkish policy path.

In the domestic market, MCX silver futures for September 2026 delivery were up Rs 613 to Rs 2,26,990 per kg. Gold futures for August 2026 delivery fell by Rs 440 to Rs 1,44,860 per 10 grams. For the week, silver has fallen more than 3%, shedding over Rs 6,000, while gold has declined by around Rs 900.

The dollar hovered near a one-week low, making dollar-denominated gold cheaper for buyers using other currencies.


Meanwhile, oil prices were set for weekly gains as the United States and Iran continued exchanging strikes. Iranian armed forces launched attacks on U.S. military infrastructure in Gulf states on Thursday in response to U.S. strikes on Iran's southern coastal and eastern provinces. The latest escalation has heightened inflation concerns and strengthened expectations that the U.S. Federal Reserve could raise interest rates this year. According to CME's FedWatch tool, markets are pricing in a 64% probability of a September rate hike, up from around 54% a week ago.

Although gold is widely viewed as a hedge against inflation, higher interest rates tend to reduce its appeal because the metal does not offer any yield.

Also read: Bought gold and silver at the top? Here's what experts suggest after prices plunged up to 50% from January

Gold and silver international prices

Spot gold rose 0.2% to $4,128.92 an ounce, but was still headed for a weekly loss of more than 1%. U.S. gold futures for August delivery were little changed at $4,139.50 an ounce. Among other precious metals, spot silver gained 0.8% to $60.46 an ounce, platinum advanced 1.6% to $1,636.68, and palladium climbed 1.6% to $1,267. Despite Friday's gains, all three metals were on course to post weekly losses.

How should you trade gold?

Gold is expected to find support in the $4,110-4,074 per troy ounce range, while resistance is seen at $4,165-4,200. Silver has support at $59.80-58.50 per troy ounce, with resistance placed at $61.40-63.00.

On the MCX, gold has support at Rs 1,44,400-1,43,650 and resistance at Rs 1,46,150-1,47,000. Silver is likely to find support at Rs 2,24,000-2,21,000, while resistance is pegged at Rs 2,29,100-2,32,000.

Given the uncertainty surrounding the U.S.-Iran peace deal ahead of the weekend, we recommend booking profits in existing long positions in both gold and silver on any sharp upward move.

Read more: Gold sitting idle at home? Here's how it could earn you an income and what to watch out for

Gold rates in physical markets

Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,06,048/8 grams while pure gold (24 carat) prices stand at Rs 1,15,680/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,05,928/8 grams while pure gold (24 carat) prices stand at Rs 1,15,560/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,06,568/8 grams while pure gold (24 carat) prices stand at Rs 1,16,256/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,05,928/8 grams while pure gold (24 carat) prices stand at Rs 1,15,560/8 grams.

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