Gold Price Falls Below ₹1.60 Lakh Per 10 Grams Amid US-Iran Tensions

Gold Prices Decline Below ₹1.60 Lakh Amid US-Iran War Tensions

Key Highlights

• MCX gold prices settled at ₹1,58,400 per 10 grams on Friday, marking a second consecutive weekly loss
• COMEX gold rate hovered around $5,120/oz in the international market
• Rising US Dollar and oil prices, coupled with increasing US Treasury yields, have put downward pressure on gold prices

Market Analysis

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Gold prices in India have declined below the psychological ₹1.60 lakh mark, amid escalating tensions between the US, Iran, and Israel. The conflict has disrupted energy flows and global markets, leading to a surge in energy prices and inflation concerns. This has lowered expectations of interest rate cuts by the Federal Reserve and other central banks. Fresh US consumer spending data released on Friday showed weak economic growth, reinforcing worries about inflationary pressures.

Technical Outlook

Ponmudi R, CEO of Enrich Money, suggests that the momentum indicators reflect a temporary neutral to mildly bearish tilt in the short term. He expects gold prices to move towards ₹1,62,000-₹1,65,000 initially, and possibly retest higher resistance around ₹1,68,000-₹1,70,000 if bullish catalysts strengthen. However, a decisive break below ₹1,57,000 could intensify downside pressure, potentially extending the corrective move towards the ₹1,55,000-₹1,50,000 support zone.

Investment Strategy

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Aamir Makda, Commodity & Currency Analyst at Choice Broking, suggests a moderately bearish trend in gold prices in upcoming sessions. He recommends traders to look for 'sell on rise' opportunities. Despite the near-term correction, the broader bullish bias remains intact as long as key structural support levels remain unbroken, supported by favorable macroeconomic tailwinds.