SynopsisGold and silver prices traded lower on MCX on Monday as renewed Middle East tensions and expectations of further US Federal Reserve rate hikes pressured the non-yielding precious metals. Gold futures fell 0.4%, while silver futures declined up to 0.3%.AgenciesGold and silver prices traded lower on MCX on Monday amid renewed Middle East tensions.Gold and silver prices were largely unchanged on the Multi Commodity Exchange (MCX) on Monday, despite renewed tensions in the Middle East raising concerns over the fragility of the Iran-US ceasefire. Meanwhile, expectations of further interest rate hikes by the US Federal Reserve continued to weigh on the non-yielding precious metals.Gold futures with August expiry on MCX fell Rs 617 per 10 grams or 0.4% to Rs 1,43,545 per 10 grams. The futures contracts with October and December expiries, meanwhile, declined up to 0.4%.Silver futures with September expiry meanwhile fell Rs 518 per kg to Rs 2,22,954, while the contracts with July and December expiries fell up to 0.3%.In the international market, spot gold fell 0.7% to $4,061.35 per ounce. US gold futures for August delivery lost 0.5% to $4,076.40. The metal was headed ‌for a fourth ⁠consecutive ⁠monthly loss of 10.4%. Spot silver meanwhile fell over 1% to $58.51 per ounce, while platinum gained 1% to $1,630.13, and palladium rose 0.8% at $1,218.92.The drop in the precious metals comes as oil prices inched up, after US and Iran's tit-for-tat strikes over the weekend marked the worst escalation since the US and Iran signed an interim peace deal. Iran-US tensions escalateUS President Donald Trump said on Saturday that Iran would "no longer exist" if the US were "forced" to resume the war. "United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!" Trump wrote on Truth Social. Early on Sunday, US Central Command (CENTCOM) said it had attacked 10 Iranian military targets over "continued Iranian aggression against commercial shipping". Iran responded by saying that it had carried out retaliatory strikes against US bases in Kuwait and Bahrain. "Any attempt to adopt new or separate arrangements compared to what is underway by the Islamic Republic of Iran, will only lead to more complicated situations and delays in the reopening of the Strait of Hormuz, and will increase the tensions," Iranian Foreign Minister Abbas Araghchi said. "I urge all parties... to adhere to the memorandum of understanding and not to allow this MoU to deviate from its course,” he further said.Iran's Revolutionary Guards said that they were taking measures to control traffic in the critical waterway and that vessels in violation of those measures would be dealt with more firmly than before. Israel meanwhile launched strikes in Lebanon as Hezbollah's leader Naim Qassem rejected a deal to end that conflict.US Federal Reserve rate hike expectationsTraders ‌now expect three Fed rate hikes this year and are pricing in an about 80% chance of a December increase, according to the CME FedWatch Tool. Market participants will now look out for June's ADP employment data and the US nonfarm payrolls data, both due later this week, to further gauge the Fed's monetary policy stance.What lies ahead?Jateen Trivedi, VP Research Analyst of Commodity and Currency at LKP Securities, highlighted that the focus indeed shifts to US Non-Farm Payrolls and unemployment data, which are expected to provide fresh direction for gold and the dollar. “Volatility is likely to remain elevated until the release of these key economic indicators,” he said."U.S. and Iran were at it again over the weekend, with fresh military strikes reported from both parties, which casts further doubt over how long oil can stay at these subdued levels and therefore over the broader inflation and interest rate outlook," Reuters quoted Tim Waterer, chief market analyst at KCM Trade. "Gold could see the $5,000 level again this year, but this would be based on further de-escalation, oil having a sustained move to pre-war levels to dull the inflationary impact of the conflict, and a softer dollar," he added.(With inputs from agencies)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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