Gold prices fall Rs 1,500/10 gram, silver dips Rs 2,100/kg as oil rally outweighs US inflation data. What should investors do?

Gold and silver prices opened lower on the MCX on Wednesday as rising crude oil prices revived inflation concerns and clouded the U.S. interest rate outlook, reducing demand for non-yielding precious metals.

In the domestic market, MCX silver futures for September 2026 delivery were down Rs 2,125 to Rs 2,21,064 per kg. Gold futures for August 2026 delivery declined by Rs 1,517 to Rs 1,40,740 per 10 grams. In the previous session, gold and silver closed higher on the back of softer-than-expected US inflation.

Oil prices extended gains for a third straight session after U.S. President Donald Trump reimposed a naval blockade on all Iranian ports and warned that power plants and bridges could be targeted next week unless Tehran returns to negotiations, marking the latest escalation in the conflict.


Higher crude oil prices tend to raise inflation concerns and strengthen expectations that interest rates could remain elevated for longer. While gold is widely viewed as a hedge against inflation, higher interest rates reduce its attractiveness because the metal does not generate any yield.

Federal Reserve officials welcomed the softer June inflation reading but said they would need to see more evidence of easing price pressures before gaining confidence that inflation is moving sustainably lower.

Investors are now awaiting the U.S. Producer Price Index data due later in the day for additional clues on the inflation outlook.

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

Spot gold fell 0.5% to $4,035.67 an ounce, while U.S. gold futures for August delivery slipped 0.7% to $4,042.20.

Among other precious metals, spot silver fell 0.3% to $58.48 per ounce. Platinum rose 0.2% to $1,635.56, while palladium edged 0.2% higher to $1,307.11.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said gold has support at $4,022-$3,989 per troy ounce, while resistance is placed at $4,110-$4,140. Silver has support at $57.40-$56.00 per troy ounce and resistance at $60.60-$62.00.

On the MCX, he said gold has support in the Rs. 1,41,400-1,40,650 range and resistance at Rs. 1,43,350-1,44,500. Silver has support at Rs. 2,20,000-2,17,700, while resistance is seen at Rs. 2,26,000-2,28,800.

Jain advised traders to book profits on every rise in existing long positions in gold and silver. However, he said long-term investors can continue to hold their positions.

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

Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,04,832/8 grams while pure gold (24 carat) prices stand at Rs 1,14,352/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,04,784/8 grams while pure gold (24 carat) prices stand at Rs 1,14,232/8 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 1,04,784/8 grams while pure gold (24 carat) prices stand at Rs 1,14,232/8 grams.

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