Gold and silver prices witnessed a steep decline at the opening on Multi Commodity Exchange (MCX) on Friday, with MCX silver futures for July 2026 delivery falling ₹16,199, or 5.56%, to ₹2,74,903 per kg as of 6:00 pm. The contract opened at ₹2,80,000, touched a high of ₹2,83,219 and a low of ₹2,70,380 during the session. Gold futures for June 2026 delivery declined ₹2,880, or 1.78%, to ₹1,59,098 per 10 grams, with the contract dropping ₹2,880 from the previous close. At the last count, gold was trading at ₹1,59,070, down ₹2,880, and silver was trading at ₹2,80,091, down ₹11,011 from the previous close. The sharp decline was driven by Iran war tensions stoking inflation concerns and strengthened expectations that interest rates could stay elevated for longer.
The domestic decline mirrored weakness in international markets, where spot gold was down 2.6% at $4,527.80 per ounce by 9:40 a.m. EDT (1340 GMT), its lowest since May 5, with prices down 4% so far this week. US gold futures for June delivery lost 3.2% to $4,535, while spot gold fell for a fourth straight session, declining 0.8% to $4,613.19 per ounce. Spot silver dropped 3.1% to $80.93 per ounce, while platinum slipped 1.7% to $2,021.75 and palladium declined 0.9% to $1,423.75. The precious metal has fallen 2.1% so far this week, reflecting sustained market pressure across all precious metals.
Market sentiment toward precious metals has been significantly impacted by escalating Iran war tensions that are stoking inflation worries across global markets. According to The Economic Times, this geopolitical development has intensified concerns about energy price volatility and potential supply disruptions, creating additional pressure on precious metals. Rising US inflation strengthened expectations that the US Federal Reserve may keep interest rates elevated for longer, creating a challenging environment for precious metals that typically benefit from lower interest rates and weaker dollar conditions. Brent crude prices have climbed around 5% this week and remained above the $106-a-barrel mark as the Iran conflict continued, keeping the crucial Strait of Hormuz largely blocked.
Crude oil prices rose more than 1%, with international benchmark Brent crude gaining 1.57% to $107.38 per barrel, while US West Texas Intermediate (WTI) crude advanced 1.72% to $102.92 per barrel. As reported by Zee News, this surge in crude oil prices has contributed to the broader weakness in precious metals markets. The persistent geopolitical tensions in West Asia and disruption in energy shipments through the Strait of Hormuz have fuelled inflationary concerns and supported the US dollar, weighing on precious metals prices across global markets.
Investors were closely monitoring talks between U.S. President Donald Trump and Chinese President Xi Jinping, with the discussions expected to focus on economic issues, preserving the fragile trade truce and addressing geopolitical tensions, including the Middle East conflict. As reported by The Economic Times, Trump is set to hold a series of meetings with Xi in Beijing, with the U.S. president also expected to seek China's support in resolving the conflict launched alongside Israel in late February. China's President Xi Jinping warned Donald Trump that Taiwan could lead to "clashes" between the superpowers, calling it a "highly dangerous situation" for the world's biggest economies, though the Trump and Xi Summit was mostly positive with Trump hoping to focus talks on trade and deals for China to buy more agricultural products and passenger planes.
Market experts have provided technical guidance for precious metals trading ahead of the Trump-Xi meeting. According to The Economic Times, gold has support at $4,634-4,600 per troy ounce and resistance at $4,722-4,770, while silver has support at $83.00-80.00 and resistance at $87.70-90.00 per troy ounce. On the MCX, gold has support at ₹1,60,300-1,59,100 and resistance at ₹1,63,200-1,64,400, while silver has support at ₹2,85,500-2,78,800 and resistance at ₹2,96,600-3,02,000. Experts advise investors to avoid fresh buying positions in gold and silver at current levels until there is greater clarity on the outcome of the meeting between the U.S. and Chinese presidents, with gold expected to find support in the $4,634-$4,600 per troy ounce range and resistance between $4,722 and $4,770.
