Gold and silver prices opened sharply lower on the MCX on Wednesday as hopes of a lasting U.S.-Iran peace agreement weakened, stoking inflation concerns and reinforcing expectations that the Federal Reserve could keep interest rates higher. In the domestic market, MCX silver futures for September 2026 delivery were down Rs 5,662 in (2.5%) to Rs 2,22,901 per kg. Gold futures for August 2026 delivery declined by Rs 1,331, 1%, to Rs 1,41,200 per 10 grams. In the previous session, the two gained up to 0.2%.Prospects for a near-term diplomatic breakthrough dimmed after Iran said it would not meet senior U.S. envoys who had travelled to the region following the outbreak of hostilities. Iranian officials also said both sides must first resolve ceasefire terms agreed two weeks ago before taking up more complex discussions on possible limits to Iran's nuclear programme.Meanwhile, Federal Reserve Bank of Cleveland President Beth Hammack said on Tuesday that she could still support higher interest rates if inflation pressures do not ease, highlighting the central bank's continued hawkish stance.Gold, traditionally viewed as a hedge against inflation, tends to lose some of its appeal when interest rates rise because it does not offer any yield. In the international market, spot gold fell 0.6% to $3,981.69 an ounce after touching its lowest level since last November in the previous session. U.S. gold futures for August delivery declined 1.1% to $3,994.40. Among other precious metals, spot silver slipped 0.9% to $58.04 an ounce, platinum fell 0.9% to $1,537.78, while palladium edged 0.2% lower to $1,202.33. How should you trade gold?Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are likely to remain volatile this week due to fluctuations in crude oil prices, movement in the dollar index, ahead of the U.S. Federal Reserve Chair's speech and the U.S. non-farm payroll data.According to Jain, gold has support at $3,994-3,955 per troy ounce and resistance at $4,074-4,110 per troy ounce. Silver has support at $57.70-56.00 per troy ounce, while resistance is placed at $61.20-62.80 per troy ounce in today's session.On the MCX, he said gold has support at Rs 1,41,100-1,40,000 and resistance at Rs 1,43,350-1,44,200. Silver has support at Rs 2,25,500-2,22,000 and resistance at Rs 2,31,000-2,34,400.Jain advised investors to wait for the Federal Reserve Chair's speech before taking fresh positions in gold and silver.Gold rates in physical marketsGold Price today in Delhi Standard gold (22 carat) prices in Delhi stand at Rs 1,04,288/8 grams while pure gold (24 carat) prices stand at Rs 1,13,760/8 grams.Gold Price today in MumbaiStandard gold (22 carat) prices in Mumbai stand at Rs 1,04,168/8 grams while pure gold (24 carat) prices stand at Rs 1,13,640/8 grams.Gold Price today in ChennaiStandard gold (22 carat) prices in Chennai stand at Rs 1,05,592/8 grams while pure gold (24carat) prices stand at Rs 1,15,192/8 grams.Gold Price today in HyderabadStandard gold (22 carat) prices in Hyderabad stand at Rs 1,04,168/8 grams while pure gold (24 carat) prices stand at Rs 1,13,640/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)