Gold, Silver Rate Today Live Updates: MCX Gold, MCX Silver prices drop; international gold prices down as rate hike fears on higher inflation reduce safe haven appeal

Jigar Trivedi of IndusInd Securities believes MCX Gold August futures could remain weak in the near term due to subdued global market sentiment. According to him, prices may drift towards the Rs 1,54,000 per 10 grams level, while Rs 1,56,000 per 10 grams is likely to be an important resistance point for intraday traders to monitor on Monday.

Manoj Kumar Jain of Prithvi Finmart said silver is expected to find support between $64.00 and $66.60 per troy ounce during the current session. On the higher side, he identified the $71.40-$74.00 per troy ounce zone as the key resistance range.

For domestic markets, Jain expects gold to receive support in the Rs 1,53,150-Rs 1,54,400 per 10 grams band, while resistance is seen between Rs 1,56,600 and Rs 1,57,400. In the case of silver, he has placed support levels at Rs 2,36,650-Rs 2,42,400 per kilogram and resistance at Rs 2,53,500-Rs 2,57,700 per kilogram.

Jain's trading strategy favours accumulating silver around Rs 2,38,000 per kilogram. He recommends maintaining a stop-loss at Rs 2,32,000 while targeting an upside move towards Rs 2,51,000.

Gold and silver prices started the week on a weak note on the Multi Commodity Exchange (MCX), with both precious metals witnessing sharp declines on Monday. Rising tensions in the Gulf region pushed crude oil prices higher, reviving concerns over inflation, while stronger-than-expected economic readings from the United States strengthened expectations that interest rates may remain elevated for an extended period.

In domestic trading, silver futures for July 2026 delivery dropped Rs 5,537, or 2.23%, to Rs 2,43,000 per kilogram. Gold futures for August 2026 delivery fell Rs 1,792, or 1.15%, to Rs 1,53,802 per 10 grams. The weakness followed heavy losses in the previous session, when silver tumbled nearly 7% and gold declined by more than 2%.

Market sentiment was also influenced by fresh developments in West Asia. According to a report by Axios, US President Donald Trump said on Sunday that he intended to urge Israeli Prime Minister Benjamin Netanyahu to avoid retaliatory action after Iran launched multiple missiles at Israeli targets. The strikes were reportedly carried out in response to an attack near Beirut.

While gold is often viewed as a preferred refuge during periods of inflation and uncertainty, higher interest rates can reduce its attractiveness because the metal does not generate any yield. Investors are increasingly weighing the possibility of tighter monetary policy in the United States, with market expectations pointing towards a potential Federal Reserve rate increase before year-end.

Data from CME Group's FedWatch tool currently suggests a 51% probability that the US central bank could raise rates by December, a factor that continues to influence sentiment across precious metals markets.

Pranav Mer, Vice President, EBG – Commodity & Currency Research at JM Financial Services, said the near-term trend for gold and silver continues to appear corrective.

Mer noted that both gold and silver faced heavy selling pressure in overseas markets last week. He attributed the weakness to stronger-than-expected US manufacturing and labour market data, which reinforced expectations that interest rates could remain elevated for longer. A firm US dollar and continued outflows from exchange-traded funds also added to the pressure on bullion prices.

Spot silver fell 0.4% to $67.52 per ounce, platinum declined 0.2% to $1,773.69, while palladium advanced 0.5% to $1,231.51 per ounce.

Elsewhere, data released by the People's Bank of China showed that the country's central bank expanded its gold holdings for a nineteenth straight month in May, with reserves increasing to 74.96 million fine troy ounces.

Physical demand remained subdued in India last week as buyers stayed cautious amid volatile international prices. In China, premiums on gold eased slightly.

Market positioning data showed that speculative investors increased their net long exposure in gold by 14,409 contracts to 111,341 contracts during the week ended June 2.

Oil prices climbed by more than $2 a barrel, intensifying market worries that higher energy costs could feed inflation and strengthen the case for additional interest rate increases.

Cleveland Federal Reserve President Beth Hammack said on Friday that recent employment data pointed to a labour market that remains close to full employment. She also indicated that persistently elevated inflation could require the Federal Reserve to consider raising rates in the near future.

Recent economic data showed the US economy recorded a third consecutive month of robust job creation in May, suggesting that labour market conditions have strengthened after last year's slowdown. The trend is seen as giving the Fed greater flexibility to maintain a restrictive policy stance as inflation risks increase amid the Iran conflict.

Gold prices continued to weaken on Monday, extending the decline seen in the previous session as investors grappled with growing expectations of higher US interest rates. At the same time, escalating tensions in the Gulf region pushed crude oil prices higher, adding to concerns that inflationary pressures could remain elevated.

By 0124 GMT, spot gold was down 0.2% at $4,321.49 per ounce. The precious metal had already fallen around 3% on Friday, touching its lowest level since March 24 after stronger-than-expected US employment data reinforced expectations of further monetary tightening. US gold futures for August delivery slipped 0.5% to $4,345.60 per ounce.