Once again a big decline has been seen for the buyers of gold and silver on the Indian bullion market and Multi Commodity Exchange (MCX). The continuous rise in the last two sessions came to a halt on Monday and the prices of both the precious metals fell sharply. Globally, investors are closely weighing the increasing tension between Iran and America, the situation in the Middle East, inflation and the changes being made in interest rates by central banks around the world. In the domestic market, silver futures for September 2026 delivery on MCX fell by Rs 1,600 and closed at Rs 2,39,008 per kg. At the same time, gold futures for October 2026 delivery fell by Rs 1,331 to Rs 1,52,171 per 10 grams.
What is the situation in the international market and how far are the prices below the all-time high?
Talking about the international market, spot gold was seen trading almost flat at $ 4,379.74 an ounce, whereas on the previous day i.e. on Friday it had touched the highest level of one week. Apart from this, US gold futures for December delivery fell slightly by 0.1 percent to $ 4,419.40. Among other precious metals, spot silver was seen trading at $ 66.76 an ounce with a rise of 0.8 percent.
If we look at the record data of MCX, on January 29, gold had reached its all-time high of Rs 1,93,096, after which till date it has become cheaper by Rs 40,925. Similarly, the all-time high of silver on MCX was recorded at Rs 4,20,048, compared to which silver is now being sold cheaper by Rs 1,81,040 from its record level.
Iran-America's threats and impact of global inflation
Over the weekend, Iran and the US issued new warnings to each other, which has further increased geopolitical tensions. US President Donald Trump had warned that if Iran does not make a deal, it may have to face the consequences of huge economic devastation or losing leadership. On the other hand, the Iranian Army has also bluntly said that any new attack will be given a befitting reply.
On the other hand, some softening has been seen in crude oil prices amid reports of improvement in Saudi Arabia's oil supply, even though the attacks by Yemen's Houthi rebels are still continuing. Meanwhile, to control inflation across the world, the phase of increasing interest rates by central banks seems to be starting again. The Bank of Japan has also recently tightened its monetary policy, while the Federal Reserve this week and the European Central Bank last week also raised rates. Minneapolis Fed President Neel Kashkari says that inflation still remains very high in many sectors of the American economy. Although gold is generally considered a great hedge against inflation, rising interest rates make other investments more attractive, which may put some pressure on demand for the non-interest bearing asset i.e. gold.
Expert advice and expert levels
According to Manoj Kumar Jain, commodity expert of Prithvi Finmart, gold can get strong support in the international market around $ 4,385 to 4,350 per ounce, while its resistance is seen in the range of $ 4,440 to 4,484. Whereas for silver, support has been considered at $65.50 to $64.40 per ounce and resistance at $68.00 to $69.10.
Talking about the domestic market i.e. MCX, according to Jain, gold has support between Rs 1,51,300 to Rs 1,50,200 and resistance at Rs 1,55,000 to Rs 1,56,100. Apart from this, silver can get support at Rs 2,38,800 to Rs 2,35,500 and resistance at Rs 2,44,000 to Rs 2,47,700. He has advised investors to buy gold if it falls around Rs 1,51,500 to Rs 1,50,000, in which the stop loss should be kept below Rs 1,49,600 and its target can be Rs 1,55,000 to Rs 1,56,100. Similarly, it is advised to buy silver around Rs 2,36,000 to Rs 2,34,000, for which stop loss can be kept below Rs 2,29,000 and target can be kept at Rs 2,44,000 to Rs 2,47,000.
(Disclaimer: These recommendations and views given by experts are their own. Investing in the commodity market is subject to financial risks, so please consult your market advisor before making any investment.)