Gold and silver prices opened sharply lower on the MCX on Monday, extending losses for a second session as fears over the closure of the Strait of Hormuz pushed oil prices sharply higher, fuelling concerns that inflation could remain elevated and keep interest rates higher for longer.

In the domestic market, MCX silver futures for September 2026 delivery were down Rs 5,400 (2.5%) to Rs 2,17,277 per kg. Gold futures for August 2026 delivery fell by Rs 2,000 to Rs 1,41,557 per 10 grams.

The decline came after the conflict between the United States and Iran intensified over the weekend. The two sides exchanged heavy missile and drone attacks, with Tehran targeting U.S. facilities across Gulf states on Sunday while also claiming it had once again closed the strategically important Strait of Hormuz.

The escalating tensions lifted oil prices by about 4%, strengthened the U.S. dollar and weighed on Asian equity markets, as investors assessed the inflationary impact of higher energy costs.

Markets will now closely track Federal Reserve Chair Kevin Warsh's first semiannual testimony before Congress, along with key U.S. economic data scheduled this week, including June CPI, PPI and retail sales figures, for fresh signals on inflation, economic growth and the outlook for monetary policy.

In its monetary policy report to Congress released on Friday, the Federal Reserve said U.S. inflation "stepped up further this spring" as the combined impact of tariffs, war-related increases in energy costs and the rapid expansion of artificial intelligence investment added to price pressures that had begun building last year.

Meanwhile, data released on Friday showed COMEX gold speculators reduced their net long positions by 1,964 contracts to 114,854 in the week ended July 7.

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

Spot gold declined 1.2% to $4,072.78 an ounce, while U.S. gold futures for August delivery slipped 0.8% to $4,081.70 an ounce. Among other precious metals, spot silver fell 1.6% to $58.89 an ounce, platinum declined 1.1% to $1,610.22 and palladium dropped 1.3% to $1,260.15 an ounce.

According to Manoj Kumar Jain of Prithvi Finmart, gold has support at $4,074-4,040 per troy ounce and resistance at $4,144-4,180, while silver has support at $59.10-57.70 per troy ounce and resistance at $61.20-62.40 in today's session.

On MCX, he sees gold finding support at Rs 1,42,400-1,41,100 and resistance at Rs 1,44,400-1,45,550. For silver, support is placed at Rs 2,20,000-2,16,600, while resistance is seen at Rs 2,26,000-2,28,800.

Jain said long-term investors could consider accumulating gold and silver in a staggered manner during the current market decline, while traders should wait for greater stability before taking fresh positions.

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 1,05,952/8 grams while pure gold (24 carat) prices stand at Rs 1,15,576/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,05,832/8 grams while pure gold (24 carat) prices stand at Rs 1,15,456/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,06,392/8 grams while pure gold (24 carat) prices stand at Rs 1,16,064/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,05,832/8 grams while pure gold (24 carat) prices stand at Rs 1,15,456/8 grams.

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