Synopsis: Gold and silver prices on MCX traded in a narrow range as investors balanced safe-haven demand from ongoing geopolitical tensions against expectations of higher-for-longer US interest rates. While bullion remained supported at lower levels, a firm US dollar and elevated Treasury yields continued to cap gains.
Gold and silver prices in India continued to witness rangebound trading on the Multi Commodity Exchange (MCX) as investors remained cautious amid mixed global cues. While safe-haven buying supported bullion prices, persistent inflation concerns and uncertainty surrounding the US Federal Reserve’s interest rate trajectory prevented a decisive breakout.
On MCX, Gold August 2026 futures were trading near Rs. 1,48,472 per 10 grams, holding firm after recent volatility. The precious metal continued to trade above the crucial Rs. 1.48 lakh level, indicating resilience despite profit booking witnessed over the past few sessions.
Silver July 2026 futures also traded with a positive bias, hovering near Rs. 2,36,742 per kg. Although the metal remained volatile, domestic silver prices continued to receive support from improving industrial demand, particularly from the solar energy, electric vehicle, semiconductor, and electronics manufacturing sectors.
The key driver for bullion markets continues to be the balance between geopolitical risks and monetary policy expectations. Escalating tensions in the Middle East have sustained demand for traditional safe-haven assets such as gold and silver. However, stronger US economic data, sticky inflation, and expectations that the US Federal Reserve may delay interest rate cuts have supported the US dollar and Treasury yields, limiting the upside in bullion prices.
A stronger dollar generally makes gold and silver more expensive for overseas buyers, while higher bond yields increase the opportunity cost of holding non-yielding assets. As a result, traders remain cautious despite continued geopolitical uncertainty.
Domestic bullion prices are also finding support from the depreciation of the Indian rupee against the US dollar, making imported precious metals costlier. However, elevated retail prices have kept physical demand relatively subdued, with buyers adopting a wait-and-watch approach ahead of the festive season.
From a technical perspective, MCX Gold is witnessing immediate support around Rs. 1,46,500–1,47,000, while resistance is placed near Rs. 1,50,000–1,51,500. A sustained move above the resistance zone could trigger fresh buying interest, whereas a fall below support may invite renewed selling pressure.
For MCX Silver, immediate support is seen around Rs. 2,33,000–2,34,000, while resistance is placed near Rs. 2,40,000–2,42,000. Despite the ongoing consolidation, the long-term outlook for silver remains constructive, supported by rising industrial demand from solar energy, electric vehicles, semiconductors, artificial intelligence infrastructure, and advanced electronics.
Going forward, bullion traders will closely monitor developments in the Middle East, US inflation data, Federal Reserve commentary, Treasury yields, and the movement of the US dollar. These factors are expected to determine whether gold and silver extend their recovery or continue trading within a consolidation range over the coming sessions.
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