Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Tuesday as a stronger U.S. dollar weighed on demand, while investors closely monitored developments in the U.S.-Iran peace negotiations and reassessed the outlook for U.S. interest rates. In the domestic market, MCX silver futures for July 2026 delivery were down Rs 7,185 (3%) to Rs 2,27,125 per kg. Gold futures for August 2026 delivery declined by Rs 1,342 to Rs 1,46,776 per 10 grams. In the previous session, the two rose up to 1%.The U.S. dollar remained close to the one-year high reached late last week, making gold more expensive for holders of other currencies. At the same time, oil prices recovered after Monday's sharp decline.Higher oil prices have renewed concerns about inflation, strengthening expectations that interest rates could remain elevated. Although gold is often viewed as a hedge against inflation, higher interest rates tend to reduce its attractiveness because the metal does not offer any yield.According to the CME FedWatch Tool, traders now assign an 88% probability to a Federal Reserve rate hike in December, up from 61% before last week's Fed meeting.In the international market, spot gold fell 0.7% to $4,162.60 per ounce after dropping nearly 1% earlier in the session. U.S. gold futures for August delivery were down 0.5% at $4,180.50. Among other precious metals, spot silver dropped 1.8% to $64.02 per ounce, platinum declined 1.6% to $1,651.79, and palladium eased 0.7% to $1,256.27. How should you trade gold?According to Manoj Kumar Jain of Prithvi Finmart, gold on MCX has support at Rs 1,47,400-1,46,650 and resistance at Rs 1,49,000-1,49,850. Silver has support at Rs 2,31,400-2,28,800 and resistance at Rs 2,37,700-2,40,400.Jain recommends buying gold on dips in the Rs 1,47,400-1,46,600 range, with a stop loss at Rs 1,45,850 and upside targets of Rs 1,48,500-1,49,100.Gold rates in physical marketsGold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 1,07,568/8 grams while pure gold (24 carat) prices stand at Rs 1,17,336/8 grams.Gold Price today in MumbaiStandard gold (22 carat) prices in Mumbai stand at Rs 1,07,448/8 grams while pure gold (24 carat) prices stand at Rs 1,17,216/8 grams.Gold Price today in ChennaiStandard gold (22 carat) prices in Chennai stand at Rs 1,08,792/8 grams while pure gold (24carat) prices stand at Rs 1,18,688/8 grams.Gold Price today in HyderabadStandard gold (22 carat) prices in Hyderabad stand at Rs 1,07,448/8 grams while pure gold (24 carat) prices stand at Rs 1,17,216/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)