Gold and Silver Prices Open Lower on MCX Amid Stronger Dollar and Fed Hawkishness
Quick Look
- Gold and silver prices saw a sharp decline on the Multi Commodity Exchange (MCX) on Friday.
- Factors contributing to the fall include a stronger U.S. dollar, hawkish signals from the Federal Reserve, and rising inflation concerns, despite a drop in oil prices.
AI-generated summary
Why It Matters
Gold and silver prices opened sharply lower on MCX on Friday, influenced by a stronger U.S. dollar and hawkish Federal Reserve messaging. This occurred despite a weekly drop in oil prices amid US-Iran interim resolution.
Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Friday as a stronger U.S. dollar and hawkish messaging from the Federal Reserve outweighed a sharp weekly drop in oil prices amid US-Iran interim resolution.
In the domestic market, MCX silver futures for July 2026 delivery were down Rs 5,371 (2.3%) to Rs 2,32,201 per kg. Gold futures for August 2026 delivery declined by Rs 2,269 to Rs 1,49,309 per 10 grams. With today’s decline, silver is down Rs 20,000 in two sessions, while gold is down Rs 7,000.
In the previous session, the two witnessed a massive selloff with silver plunging over 5% and gold 3%.
Rising inflation concerns linked to the Iran conflict have led a growing number of central banks to either increase borrowing costs or signal measures aimed at containing price pressures. According to the CME FedWatch Tool, traders now see an 87% probability of a Federal Reserve rate hike in December.
Higher interest rates typically reduce gold's attractiveness since the metal does not generate any yield.
Live Events
In the international market, Spot gold fell 0.6% to $4,184.33 per ounce as of 0211 GMT and was down 0.9% for the week. Among other precious metals, spot silver fell 1.5% to $64.83 per ounce, platinum declined 1.3% to $1,674.47, and palladium was down 0.8% at $1,268.65.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart said that gold and silver prices are likely to remain volatile during the session, amid fluctuations in crude oil prices, movements in the dollar index,, and developments related to US-Iran peace deal negotiations.
On MCX, gold has support at Rs 1,48,000-Rs 1,46,650 and resistance at Rs 1,50,150-Rs 1,51,100. Silver has support at Rs 2,34,000-Rs 2,30,500 and resistance at Rs 2,41,000-Rs 2,44,400.
Jain advised traders to avoid fresh long positions in gold and silver at current levels. However, he said long-term investors can use the recent dip to accumulate through the SIP route.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,09,752/8 grams while pure gold (24 carat) prices stand at Rs 1,19,720/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,09,632/8 grams while pure gold (24 carat) prices stand at Rs 1,19,600/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,11,592/8 grams while pure gold (24carat) prices stand at Rs 1,21,736/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,09,632/8 grams while pure gold (24 carat) prices stand at Rs 1,19,600/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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What to Watch
AI outlook — possibilities, not facts
Federal Reserve rate hike in December
Very likely · Within months
Open Questions
- Will the Fed hike rates in December?
- How will US-Iran negotiations impact markets?
- What is the long-term outlook for gold and silver?
