Gold and silver prices opened lower on the Multi Commodity Exchange (MCX) on Tuesday as traders weighed the fragile ceasefire between Israel and Iran while keeping a close watch on developments in the broader Middle East conflict. Concerns over inflation and the prospect of higher interest rates also remained in focus.
In the domestic market, MCX silver futures for July 2026 delivery were down Rs 2,457 (1%) to Rs 2,43,932 per kg. Gold futures for August 2026 delivery slipped Rs 388 to Rs 1,53,396 per 10 grams. In the previous session, silver crashed nearly 7%, while gold dipped over 2%.
Iran and Israel said on Monday that they had halted attacks on each other following an appeal from U.S. President Donald Trump. However, Tehran warned that it would resume military action if Israel continued striking Hezbollah targets in Lebanon.
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 was steady at $4,332.50 an ounce. In the previous session, the precious metal fell to its lowest level in more than two months. Among other precious metals, spot silver declined 0.7% to $67.71 per ounce, platinum slipped 0.2% to $1,751.39, while palladium gained 0.8% to $1,213.89.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are likely to remain volatile this week amid fluctuations in crude oil prices, movements in the dollar index and uncertainty surrounding the US-Iran peace deal.
According to Jain, gold has support at $4,343-$4,280 per troy ounce and resistance at $4,400-$4,440 per troy ounce. Silver has support at $66.60-$64.00 per troy ounce, while resistance is seen at $71.40-$74.00 per troy ounce in today's session.
On MCX, gold has support at Rs 1,53,350-Rs 1,52,200 and resistance at Rs 1,55,500-Rs 1,56,650. Silver has support at Rs 2,42,200-Rs 2,38,000 and resistance at Rs 2,51,000-Rs 2,55,500.
Jain said Prithvi Finmart had recommended buying silver around Rs 2,38,000 on Monday with a target of Rs 2,51,000. Investors who accumulated the metal on dips are advised to maintain a stop loss at Rs 2,39,000 and consider booking profits in the Rs 2,47,000-Rs 2,50,000 range.
Gold rates in physical markets
Gold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 1,11,352/8 grams while pure gold (24 carat) prices stand at Rs 1,21,464/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,11,232/8 grams while pure gold (24 carat) prices stand at Rs 1,21,344/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,12,552/8 grams while pure gold (24carat) prices stand at Rs 1,22,784/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,11,232/8 grams while pure gold (24 carat) prices stand at Rs 1,21,344/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
