Gold and silver prices fell up to 1% in early deals on the MCX on Tuesday, 28 July 2026, mirroring weak global cues. Precious metals witnessed profit-taking as the dollar index hovered near 101.5 ahead of the US Federal Reserve’s monetary policy decision on 29 July 2026.
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MCX gold August futures were 0.60% down at ₹1,42,200 per 10 grams, while MCX silver September contracts were 1.40% down at ₹2,18,076 per kg around 9:10 AM.
In international markets, US gold prices traded lower as easing geopolitical tensions following the US and Iran’s pause in retaliatory strikes reduced safe-haven demand.
The decline was also seen in the international market, where gold prices moved lower due to reduced demand for safe-haven assets.
Price Movement on MCX
| Commodity | Price Movement | Main Reason |
|---|---|---|
| Gold | Down by up to 1% | Profit booking before US Fed decision |
| Silver | Down by up to 1% | Weak global sentiment and profit booking |
The focus is also on the US Federal Reserve policy decision on 29 July. The US central bank is widely expected to keep benchmark rates unchanged in the 3.50%-3.75% range.
raders will closely monitor Fed Chair Kevin Warsh’s comments, along with this week’s US GDP and PCE inflation data, for fresh cues on the interest rate trajectory.
Meanwhile, on the geopolitical front, de-escalation in the Middle East conflict dragged crude oil prices further lower.
Brent crude fell more than 2% to trade near the $86 per barrel.
Iran and the US halted their strikes on 26 July. US President Donald Trump said the US and Iran were engaged in discussions and suggested that a potential agreement could emerge. However, Iran denied any direct negotiations with Washington.
“Gold is under pressure amid lingering concerns that the Federal Reserve could raise interest rates in July. Moreover, Trump’s comments that the US was engaged in talks with Iran to end the Middle East conflict pushed oil prices lower and eased concerns over inflation, weighing on gold prices,” Jigar Trivedi, Senior Research Analyst at IndusInd Securities, noted.
Gold and silver prices: Key levels to watch
Gold has support at $4,000, while resistance is at $4,120 per troy ounce. Silver has support at $55.50, while resistance is at $60 per troy ounce in today’s session.
On the MCX, gold has support at ₹1,41,100, and resistance is at ₹1,45,500, while silver has support at ₹2,16,000, and resistance is at ₹2,27,700.
“We suggest buying gold on dips around ₹1,41,100 with a stop loss below ₹1,40,400 for the targets of ₹1,43,550 and buying silver on dips around ₹2,16,500 with a stop loss below ₹2,14,400 for the targets of ₹2,25,500,”.
Noted that the yellow metal remains below both the 21-day and 55-day EMAs, keeping the short-term trend weak.
“Unless prices decisively move above the 21-day EMA, the preferred strategy remains sell on rise. On the downside, ₹1,38,200 continues to be the key support, and a breach below this level could trigger another round of selling”.
Conclusion
Gold and silver prices declined by up to 1% on MCX as investors booked profits before the US Federal Reserve policy announcement. At the same time, easing geopolitical tensions reduced demand for safe-haven investments in the global market. The upcoming Fed decision is expected to play a major role in determining the next move in precious metal prices.
Frequently Asked Questions (FAQs)
1. Why did gold prices fall on MCX today?
Gold prices declined mainly because traders booked profits before the US Federal Reserve announced its monetary policy. Reduced geopolitical tensions also weakened demand for safe-haven assets.
2. Why are silver prices also falling?
Silver prices followed gold lower due to profit booking, weaker global sentiment, and cautious trading ahead of the US Fed policy decision.
3. How does the US Federal Reserve affect gold prices?
The Federal Reserve’s interest rate decisions influence the value of the US Dollar and investor sentiment. Higher interest rates usually put pressure on gold prices, while lower rates can support them.
4. What is profit booking in the commodity market?
Profit booking happens when investors sell their holdings after prices have risen, allowing them to lock in gains before a major event or possible market correction.
5. Should investors buy gold after this price fall?
A price decline may offer an opportunity for long-term investors, but it is important to consider market conditions, the US Fed’s policy outlook, and personal investment goals before making any decision.
Disclaimer
This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified SEBI-registered financial experts before making any investment or trading decisions.
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