Gold and silver prices opened sharply lower on Multi Commodity Exchange (MCX) on Monday as escalating tensions in the Middle East pushed oil prices higher, stoking inflation concerns and strengthening expectations that interest rates could remain elevated for longer. In the domestic market, MCX silver futures for July 2026 delivery dipped Rs 5,643 or 2.1% to Rs 2,66,243 per kg. Gold futures for June 2026 delivery were down Rs 1,000 or 0.6% Rs 1,57,547 per 10 grams. In the previous session, silver and gold ended flat-to-negative.The decline in bullion prices came after a drone strike triggered a fire at a nuclear power plant in the United Arab Emirates, intensifying geopolitical tensions and driving crude oil prices to a two-week high. Rising oil prices boosted concerns over inflation and reinforced market bets of another interest rate hike by the U.S. Federal Reserve.Markets are now increasingly pricing in a Fed rate hike before the end of the year, with CME Group’s FedWatch tool indicating a 50% probability of a move by December. Investors are also awaiting the minutes of the Fed’s April policy meeting later this week for further clues on the central bank’s monetary policy outlook.In the international market, spot gold fell 1.1% to $4,488.99 per ounce by 0052 GMT after touching its weakest level since March 30. U.S. gold futures for June delivery also slipped 1.5% to $4,493.30. Among other precious metals, spot silver dropped 2.2% to $74.30 per ounce, platinum fell 0.6% to $1,961.30, while palladium declined 1.2% to $1,396.25. How should you trade gold?Manoj Kumar Jain said both precious metals are witnessing extremely high price volatility and that only a meaningful peace agreement between the U.S. and Iran could support gold and silver prices. He said silver could hold support at $64per troy ounce, while gold may sustain above the $4,343.00 per troy ounce level on a weekly closing basis.Jain added that gold and silver prices are likely to remain volatile this week due to fluctuations in the dollar index, swings in crude oil prices and uncertainty surrounding a possible U.S.-Iran peace deal. According to him, gold has support at $4,515-$4,470 and resistance at $4,600-$4,640 per troy ounce, while silver has support at $75.50-$72 and resistance at $80-$82.80 per troy ounce in the current session.On MCX, he said gold has support at Rs 1,57,000-Rs 1,55,500 and resistance at Rs 1,59,400-Rs 1,60,650, while silver has support at Rs 2,66,600-Rs 2,61,200 and resistance at Rs 2,77,700-Rs 2,83,000. He advised investors to wait for some stability in bullion markets before taking fresh positions.Gold rates in physical marketsGold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 1,15,192/8 grams while pure gold (24 carat) prices stand at Rs 1,25,656/8 grams.Gold Price today in MumbaiStandard gold (22 carat) prices in Mumbai stand at Rs 1,15,072/8 grams while pure gold (24 carat) prices stand at Rs 1,25,536/8 grams. Gold Price today in ChennaiStandard gold (22 carat) prices in Chennai stand at Rs 1,17,992/8 grams while pure gold (24carat) prices stand at Rs 1,28,720/8 grams.Gold Price today in HyderabadStandard gold (22 carat) prices in Hyderabad stand at Rs 1,15,072/8 grams while pure gold (24 carat) prices stand at Rs 1,25,536/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)