Silver prices tank Rs 5,500/kg, gold down Rs 1,800/10 gm as Israel attacks, rising crude trigger panic. Should you sell?

Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Monday as escalating tensions in the Gulf pushed oil prices higher, raising fresh worries about inflationary pressures. At the same time, stronger-than-expected U.S. economic data reinforced concerns that interest rates could remain higher for longer.

In the domestic market, MCX silver futures for July 2026 delivery were down Rs 5,537 (2.23%) to Rs 2,43,000 per kg. Gold futures for August 2026 delivery slipped Rs 1,792 (1.15%) to Rs 1,53,802 per 10 grams. In the previous session, silver crashed nearly 7%, while gold dipped over 2%.

Investor sentiment was also shaped by developments in the Middle East. According to an Axios report, U.S. President Donald Trump said on Sunday that he would urge Israeli Prime Minister Benjamin Netanyahu not to retaliate after Iran launched a barrage of missiles at Israeli targets in response to an attack on the outskirts of Beirut.


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 0.2% to $4,321.49 per ounce as of 0124 GMT, after tumbling about 3% on Friday to its lowest level since March 24. Among other precious metals, spot silver fell 0.4% to $67.52 per ounce, platinum slipped 0.2% to $1,773.69, while palladium bucked the trend and rose 0.5% to $1,231.51 per ounce.

How should you trade gold?

Jigar Trivedi of IndusInd Securities said MCX Gold August futures may remain under pressure and could decline towards Rs 1,54,000 per 10 grams amid weak global cues. On the upside, he sees Rs 1,56,000 per 10 grams as a key level to watch for intraday trade on Monday.

Manoj Kumar Jain of Prithvi Finmart said silver has support in the $66.60-$64.00 per troy ounce range, while resistance is placed at $71.40-$74.00 per troy ounce for the current session.

On MCX, he sees gold support at Rs 1,54,400-1,53,150 and resistance at Rs 1,56,600-1,57,400. For silver, support is pegged at Rs 2,42,400-2,36,650, while resistance is seen at Rs 2,53,500-2,57,700. Jain recommends buying silver around Rs 2,38,000 with a stop loss at Rs 2,32,000 and a target of Rs 2,51,000.

Gold rates in physical markets

Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,12,112/8 grams while pure gold (24 carat) prices stand at Rs 1,24,720/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,11,992/8 grams while pure gold (24 carat) prices stand at Rs 1,22,176/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,13,592/8 grams while pure gold (24carat) prices stand at Rs 1,23,920/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,11,992/8 grams while pure gold (24 carat) prices stand at Rs 1,22,176/8 grams.

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