Gold, Silver Rate Today Live Updates: MCX Gold futures drop 2%, go below Rs 1.5 lakh per 10 grams; international gold prices dip, on track for third weekly loss

Gold futures plunged by Rs 3,392 to Rs 1.45 lakh per 10 grams on Friday, mirroring weakness in international markets as uncertainty surrounding the implementation of the US-Iran peace agreement dampened appetite for precious metals.

On the Multi Commodity Exchange (MCX), gold contracts for August delivery extended their decline for a second consecutive session. The yellow metal fell Rs 3,392, or 2.27%, to Rs 1,45,917 per 10 grams, with trading activity amounting to 9,099 lots.

Market analysts said enthusiasm generated by the US-Iran peace agreement weakened after a round of high-level discussions scheduled in Switzerland was postponed, raising questions about the execution of measures intended to end the conflict and restore energy shipments through the Strait of Hormuz.
Switzerland's foreign ministry confirmed that the talks planned for Friday to discuss the next stage of the agreement had been deferred indefinitely.

Reports also indicated that US Vice-President JD Vance had delayed a proposed visit, while Iran's participation in the negotiations remained uncertain.
According to analysts, these developments have increased doubts among investors about the smooth implementation of the peace process, prompting caution across commodity markets.

Manoj Kumar Jain of Prithvi Finmart told ET that gold and silver price movements will likely to be influenced by fluctuations in crude oil, changes in the dollar index and ongoing developments surrounding negotiations related to the US-Iran peace agreement.

According to Jain, gold on the MCX has immediate support in the Rs 1,48,000-1,46,650 range, while resistance is seen between Rs 1,50,150 and Rs 1,51,100. For silver, support levels are placed at Rs 2,34,000-2,30,500, whereas resistance is expected in the Rs 2,41,000-2,44,400 zone.

He advised traders to refrain from initiating fresh long positions in either gold or silver at current prices. However, he noted that investors with a long-term horizon may consider using the recent correction to gradually build exposure through the SIP route.

Gold and silver prices witnessed a sharp decline at the opening of trade on the Multi Commodity Exchange (MCX) on Friday, as strength in the US dollar and the Federal Reserve's hawkish stance outweighed support from a steep fall in oil prices following the interim understanding between the US and Iran.

In the domestic derivatives market, silver futures for July 2026 delivery dropped Rs 5,371, or 2.3%, to Rs 2,32,201 per kg. Gold futures for August 2026 delivery fell Rs 2,269 to Rs 1,49,309 per 10 grams. The latest slide has taken silver's losses to nearly Rs 20,000 over the past two sessions, while gold has shed around Rs 7,000 during the same period.

The weakness follows a sharp selloff in the previous session, when silver tumbled more than 5% and gold declined around 3%.

Growing inflation concerns stemming from the Iran conflict have prompted an increasing number of central banks to either raise borrowing costs or signal a tighter policy stance aimed at controlling price pressures. Reflecting this shift, traders now assign an 87% probability to a Federal Reserve interest rate hike in December, according to the CME FedWatch Tool.

Higher interest rates generally weigh on gold prices because the precious metal does not offer any yield, making interest-bearing assets relatively more attractive to investors.

Goldman Sachs now expects gold to reach $4,900 an ounce by December, lower than its previous forecast of $5,400, after revising its outlook to reflect the view that the Fed is unlikely to cut rates this year.

On the geopolitical front, oil tanker traffic resumed through the Strait of Hormuz, while the US announced on Thursday that it had lifted its blockade on Iran.
Among other precious metals, spot silver declined 1.5% to $64.83 per ounce, platinum fell 1.3% to $1,674.47, and palladium eased 0.8% to $1,268.65 per ounce.

Projections released after the Federal Reserve's latest policy meeting showed that nine of the 19 policymakers now anticipate at least one interest rate increase this year, even though the central bank left rates unchanged at its first meeting under Warsh's leadership.

Inflation concerns linked to the Iran conflict have also prompted several central banks around the world to either raise borrowing costs or signal their intention to tighten policy further.

Market expectations for a US rate hike in December have risen sharply, with traders now assigning an 87% probability to such a move, compared with 61% before the Fed's latest decision, according to the CME FedWatch Tool.

Since gold does not generate interest income, higher interest rates tend to reduce its attractiveness relative to yield-bearing assets.

Tim Waterer, Chief Market Analyst at KCM Trade, said gold's gains following the US-Iran peace agreement faded quickly as renewed strength in the dollar took centre stage after the Federal Reserve adopted a firmer tone under Chairman Kevin Warsh.

According to Waterer, the market's focus has shifted back to monetary policy, with the Fed's stance outweighing the positive geopolitical backdrop that had briefly supported bullion.

Gold prices moved lower on Friday and were headed for a third straight weekly decline, pressured by a strengthening US dollar and the Federal Reserve's increasingly hawkish stance, which reduced the appeal of the non-interest-bearing asset.

Spot gold slipped 0.6% to $4,184.33 an ounce by 0211 GMT and was down 0.9% for the week. US gold futures for August delivery also weakened, falling 1% to $4,202.10 per ounce.