Synopsis: Gold and silver prices on MCX witnessed a recovery after recent weakness, supported by safe-haven demand and geopolitical uncertainty. However, concerns over inflation and the possibility of higher US interest rates continue to limit upside momentum.
Gold and silver prices in India are trading with a positive bias on the Multi Commodity Exchange (MCX) after witnessing sharp volatility over the past few sessions. While bullion has recovered from recent lows, traders remain cautious as persistent inflationary pressures and expectations of a potential US Federal Reserve rate hike continue to influence sentiment.
On MCX, gold futures were trading near Rs. 1,50,350 per 10 grams, gaining around 0.95 percent during the session. The precious metal has managed to hold above the psychologically important Rs. 1.48 lakh level after experiencing significant selling pressure earlier this week.
Silver futures rebounded from recent lows, with the July 2026 MCX Silver contract hovering near Rs. 2,41,000 per kg. Despite intermittent volatility, domestic silver prices remain elevated, supported by robust industrial demand and growing adoption in solar energy, electric vehicles, and electronics manufacturing. Market participants are closely tracking global economic data and interest-rate expectations, which continue to drive short-term price movements in the precious metal.
The primary driver for bullion markets remains the ongoing tug-of-war between safe-haven demand and monetary policy concerns. Geopolitical uncertainty in the Middle East has provided support to gold and silver, while stronger-than-expected inflation readings in the United States have increased speculation that the Federal Reserve may keep interest rates higher for longer or even consider additional tightening measures.
Higher interest rates generally act as a headwind for precious metals because gold and silver do not generate interest income. Rising bond yields and a stronger US dollar increase the opportunity cost of holding bullion, limiting investor appetite. Recent market data indicates that traders are increasingly pricing in the possibility of a US rate hike later this year.
From a technical perspective, MCX Gold is witnessing immediate support around Rs. 1,48,000–1,49,000, while resistance is placed near Rs. 1,52,000–1,54,000. A sustained move above resistance could improve short-term sentiment, whereas a break below support may trigger fresh selling pressure.
For MCX Silver, immediate support is seen around recent consolidation zones, while resistance remains near the upper end of its recent trading range. The metal continues to derive long-term support from growing industrial demand linked to solar energy, electric vehicles, electronics, and clean-energy infrastructure.
Going forward, bullion traders will closely monitor US inflation data, Federal Reserve commentary, bond yields, dollar movement, and geopolitical developments. These factors are likely to determine whether gold and silver can extend their recovery or remain trapped in a consolidation phase over the coming sessions.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own and not that of the website or its management. Investing in commodities and equities poses a risk of financial losses. Investors must therefore exercise due caution before investing or trading. Trade Brains Technologies Private Limited or the author are not liable for any losses arising from decisions based on this article. Please consult your investment advisor before investing.
