Gold and silver prices opened higher on Tuesday on the MCX, snapping a two-day losing streak even as escalating tensions between the United States and Iran pushed oil prices sharply higher, stoking inflation concerns and strengthening expectations of higher U.S. interest rates after hawkish comments from Federal Reserve Governor Christopher Waller.

In the domestic market, MCX silver futures for September 2026 delivery were up Rs 615 to Rs 2,18,333 per kg. Gold futures for August 2026 delivery rose by Rs 691 to Rs 1,41,000 per 10 grams. In the previous session, gold edged 0.20% lower, while silver slipped 0.15%.

Investors are awaiting the June U.S. consumer price index (CPI) data, due later on Tuesday, for fresh signals on inflation and the Federal Reserve's policy outlook.

The latest weakness in bullion came as the U.S. military carried out a third consecutive night of strikes against Iran, while two tankers were attacked in the Strait of Hormuz after U.S. President Donald Trump announced that Washington was reinstating its blockade of Iranian shipping in the Gulf.

The geopolitical escalation sent oil prices to their highest levels since mid-June after a nearly 9% surge in the previous session. At the same time, U.S. Treasury yields and the dollar strengthened, weighing on demand for non-yielding assets such as gold.

Adding to the pressure on gold, Federal Reserve Governor Christopher Waller said on Monday that the central bank may need to raise interest rates in the near term if upcoming data show inflation remaining well above the Fed's 2% target. He described monetary policy as being at a "crossroads."

Expectations of tighter monetary policy have strengthened, with the CME Group's FedWatch Tool showing the probability of a September U.S. rate hike rising to around 78% from 57% a week earlier.

Also read: Bought gold and silver at the top? Here's what experts suggest after prices plunged up to 50% from January

Spot gold fell 0.2% to $3,993.83 an ounce after tumbling nearly 3% in the previous session, marking its biggest single-day percentage decline in more than a month. U.S. gold futures for August delivery were little changed at $4,000.70 per ounce.

Among other precious metals, spot silver fell 1.2% to $56.98 per ounce after touching a two-week low earlier in the session. Platinum declined 1% to $1,589.35, while palladium slipped 0.4% to $1,242.54.

Manoj Kumar Jain of Prithvi Finmart said gold has support at $3,955-3,910 per troy ounce, while resistance is placed at $4,040-4,085. For silver, he sees support at $56.00-54.40 per troy ounce and resistance at $59.10-60.60.

On the MCX, he expects gold to find support in the Rs 1,39,100-1,37,700 range, with resistance at Rs 1,41,400-1,42,200. For silver, support is seen at Rs 2,16,000-2,12,400, while resistance is placed at Rs 2,20,000-2,22,500.

Jain advised traders to avoid taking fresh long positions in gold and silver at current levels. However, he said long-term investors could use the ongoing correction to accumulate the two precious metals through the SIP route.

Read more: Gold sitting idle at home? Here's how it could earn you an income and what to watch out for

Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,04,912/8 grams while pure gold (24 carat) prices stand at Rs 1,14,440/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,04,792/8 grams while pure gold (24 carat) prices stand at Rs 1,14,320/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,05,592/8 grams while pure gold (24 carat) prices stand at Rs 1,15,192/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,04,792/8 grams while pure gold (24 carat) prices stand at Rs 1,14,320/8 grams.

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