New Delhi — Despite rising geopolitical tensions, especially the ongoing conflict in the Middle East, gold prices in India are currently trading nearly 17% below their all-time high, reflecting mixed market sentiment.
Globally, gold on COMEX settled at $4,679.70 per ounce, while domestic prices on MCX closed at ₹1,49,650 per 10 grams. This is significantly lower than the record high of ₹1,80,779 per 10 grams—about ₹31,000 down from the peak.
Initially, escalating tensions boosted gold’s appeal as a safe-haven asset. However, sentiment shifted after comments from Donald Trump dampened hopes of a ceasefire in the US-Iran conflict, reducing bullish momentum in the bullion market.
Another key factor weighing on gold is the strengthening of the US dollar. A surge in crude oil prices has fueled global inflation concerns, indirectly supporting the dollar. Since gold is priced in dollars, a stronger greenback makes it more expensive for investors using other currencies, limiting demand.
Adding to the pressure, recent US economic data—especially strong employment indicators—has reinforced expectations that the Federal Reserve may maintain higher interest rates for longer. This is typically negative for gold, as it is a non-yielding asset and becomes less attractive compared to interest-bearing investments.
From a technical standpoint, analysts see support for gold prices around ₹1,48,000, while resistance is expected near ₹1,55,000.
Despite these headwinds, gold still managed to gain about 2.2% over the past week, indicating underlying support amid uncertainty. Experts believe the metal will remain volatile in the near term, with prices largely driven by geopolitical developments and inflation trends.
With inputs from IANS