Gold and silver prices opened lower on the Multi Commodity Exchange on Monday to snap a two-day rally as investors weighed fresh tensions between Iran and the US, developments in the Middle East and the potential impact on inflation and interest rates.

In the domestic market, MCX silver futures for September 2026 delivery declined by Rs 1,600 to Rs 2,39,008 per kg. Gold futures for October 2026 delivery fell by Rs 1,331 to Rs 1,52,171 per 10 grams. Previously, the two metals had risen for two straight sessions.

Iran and the United States traded fresh threats over the weekend. US President Donald Trump warned that Iran could face economic failure or the loss of its leadership if it did not reach a deal, while the Iranian military said it would respond harshly to any new attack.

Oil prices also moved lower as investors assessed a recovery in Saudi Arabian shipments despite continued attacks by Yemen's Houthis, which have added to tensions in the region. Meanwhile, the possibility of another global interest rate-tightening cycle is emerging as some major central banks raise rates and indicate that further increases could be needed to bring down inflation fuelled by the Iran war.

The Bank of Japan became the latest major central bank to tighten monetary policy on Friday, following rate increases from the Federal Reserve earlier in the week and the European Central Bank the previous week. Minneapolis Fed President Neel Kashkari also said inflation remained too high across all sectors of the US economy.

While gold is traditionally viewed as a hedge against inflation, higher interest rates can weigh on demand for the non-yielding asset by making interest-bearing investments more attractive.

Spot gold was nearly flat at $4,379.74 per ounce after touching a one-week high on Friday. US gold futures for December delivery slipped 0.1% to $4,419.40.

In other precious metals, spot silver rose 0.8% to $66.76 per ounce, while platinum gained 0.2% to $1,804.33. Palladium was up 0.7% at $1,311.65.

Manoj Kumar Jain of Prithvi Finmart said gold is likely to find support at $4,385-$4,350 per troy ounce, while resistance is seen at $4,440-$4,484. For silver, support is placed at $65.50-$64.40 per troy ounce, with resistance at $68.00-$69.10.

On the MCX, Jain said gold has support at Rs 1,51,300-Rs 1,50,200, while resistance is placed at Rs 1,55,000-Rs 1,56,100. For silver, support is seen at Rs 2,38,800-Rs 2,35,500 and resistance at Rs 2,44,000-Rs 2,47,700.

Jain recommended buying gold on dips around Rs 1,51,500-Rs 1,50,000, with a stop loss below Rs 1,49,600, for a target of Rs 1,55,000-Rs 1,56,100. For silver, he suggested buying around Rs 2,36,000-Rs 2,34,000, with a stop loss below Rs 2,29,000 and a target of Rs 2,44,000-Rs 2,47,000.

Standard gold (22 carat) prices in Delhi stand at Rs 1,14,392/8 grams while pure gold (24 carat) prices stand at Rs 1,24,784/8 grams.

Standard gold (22 carat) prices in Mumbai stand at Rs 1,14,272/8 grams while pure gold (24 carat) prices stand at Rs 1,24,664/8 grams.

Standard gold (22 carat) prices in Chennai stand at Rs 1,14,272/8 grams while pure gold (24 carat) prices stand at Rs 1,24,664/8 grams.

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,14,272/8 grams while pure gold (24 carat) prices stand at Rs 1,24,664/8 grams.

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