New Delhi, July 17 -- Gold and silver prices traded mixed, with volatility in morning trade on the MCX on Friday (17 July), amid weak global cues and tepid spot market demand.

MCX gold August futures were 0.26% up at Rs.1,40,718 per 10 grams, while MCX silver September futures were 0.23% down at Rs.2,15,512 per kg around 9:05 am.

In the previous session, the MCX gold August futures declined 1%, and the silver September futures contract plunged 2%.

The biggest challenge for gold and silver is the US-Iran tension, which has lifted crude oil prices and revived inflation fears, in turn driving fears of rate hikes by the US Federal Reserve in the near future.

Gold is considered a hedge against inflation, but its price tends to fall when in...