Silver dips Rs 2,300, gold at Rs 1.51 lakh as oil surge, Iran war uncertainty raise inflation worries. What’s next?

Gold and silver prices opened sharply lower on the Multi-Commodity Exchange of India on Friday as oil prices surged back towards $110 per barrel, intensifying inflation concerns and raising expectations that interest rates may stay higher for longer.

Tensions escalated further after Iran released footage of commandos boarding a cargo vessel in the Strait of Hormuz, along with reports that its air defence systems had engaged what were described as “hostile targets.”

In the domestic market, MCX silver futures for May 2026 delivery fell Rs 2,300 or 1%, to Rs 2,39,200 per kg. Gold futures for June 2026 delivery declined Rs 600 or 0.4% to 1,51,159 per 10 grams. In the previous session, silver and gold ended higher by 0.25% each.

Rising crude oil prices tend to fuel inflation by increasing transportation and production costs, which in turn raises the likelihood of higher interest rates. Although gold is traditionally seen as a hedge against inflation, higher interest rates reduce its appeal by making yield-bearing assets more attractive.

Globally, yellow metal was little changed on Friday but remained on course for a weekly decline. Spot gold edged up 0.1% to $4,697 per ounce as of 0105 GMT, though it has fallen 2.6% so far this week, snapping a four-week winning streak. U.S. gold futures for June delivery slipped 0.2% to $4,712.50. Spot silver also eased 0.1% to $75.36 per ounce.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said gold and silver are likely to remain volatile in today’s session due to fluctuations in the dollar index, swings in crude oil prices and uncertainty around the US-Iran peace deal.

He sees gold support at $4,681–4,640 and resistance at $4,755–4,790 per troy ounce. Silver has support at $72–68 and resistance at $78–80.40 per troy ounce for the day.

On MCX, gold has support at Rs 1,55,000–1,49,800 and resistance at Rs 1,52,350–1,53,100, while silver has support at Rs 2,38,800–2,34,000 and resistance at Rs 2,45,000–2,48,500.

He advises waiting for stability in bullion markets before taking fresh positions.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,12,712/8 grams while pure gold (24 carat) prices stand at Rs 1,22,952/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,12,592/8 grams while pure gold (24 carat) prices stand at Rs 1,22,832/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,13,272/8 grams while pure gold (24carat) prices stand at Rs 1,23,576/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,12,592/8 grams while pure gold (24 carat) prices stand at Rs 1,22,832/8 grams.

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