Gold prices extended their decline on the Multi Commodity Exchange (MCX) on Friday, while silver remained volatile as fresh tensions between the United States and Iran weighed on investor sentiment. The ongoing geopolitical uncertainty has spurred risk aversion, prompting a shift towards safe-haven assets, yet gold failed to capitalize on the trend.
Gold and Silver Performance on MCX
On the MCX, gold futures for August delivery fell by 0.2% to Rs 48,600 per 10 grams, extending losses from the previous session. Silver futures for September delivery, however, traded mixed, oscillating between gains and losses, and were last seen at Rs 65,200 per kg, down 0.1%.
The decline in gold prices comes despite a weaker US dollar and lower bond yields, which typically support precious metals. Analysts attribute the drop to profit-booking after recent gains and uncertainty over the pace of economic recovery.
US-Iran Tensions Fuel Safe-Haven Demand
Fresh geopolitical tensions between the United States and Iran have escalated, with reports of increased military posturing in the Persian Gulf. The United States has warned of potential attacks on its assets, while Iran has responded with threats of retaliation. This has raised concerns about supply disruptions in the region, impacting oil prices and prompting investors to seek refuge in gold and silver.
According to market experts, the safe-haven demand for gold and silver could increase if tensions escalate further. However, the upside remains capped by expectations of tighter monetary policy from central banks.
City-Wise Gold Rates
Here are the gold rates for 24k and 22k purity in major Indian cities as of July 10, 2026:
- Delhi: 24k - Rs 48,800/10g; 22k - Rs 44,800/10g
- Mumbai: 24k - Rs 48,600/10g; 22k - Rs 44,600/10g
- Chennai: 24k - Rs 48,900/10g; 22k - Rs 44,900/10g
- Kolkata: 24k - Rs 48,700/10g; 22k - Rs 44,700/10g
- Bengaluru: 24k - Rs 48,650/10g; 22k - Rs 44,650/10g
- Hyderabad: 24k - Rs 48,700/10g; 22k - Rs 44,700/10g
- Ahmedabad: 24k - Rs 48,550/10g; 22k - Rs 44,550/10g
Silver Rates in Major Cities
Silver prices also showed mixed trends across cities. In Delhi, silver was trading at Rs 65,500 per kg, while in Mumbai it was at Rs 65,200 per kg. Chennai saw silver at Rs 66,000 per kg, and Kolkata at Rs 65,300 per kg.
Outlook for Precious Metals
Analysts suggest that gold and silver may remain volatile in the near term, driven by geopolitical developments and macroeconomic data. The US Federal Reserve's stance on interest rates and inflation will also influence the trajectory. According to a commodity analyst at Anand Rathi Shares and Stock Brokers, "Gold is likely to trade in a range of Rs 48,000-49,000 in the short term, with support at Rs 48,200 and resistance at Rs 49,000. Silver may trade between Rs 64,000 and Rs 66,500."
Investors are advised to monitor the US-Iran situation closely, as any further escalation could trigger a sharp rally in safe-haven assets.
