Gold Rate Update

US-Iran War Escalation Weighs on Gold Prices

The COMEX Gold Rate opened with a downside gap, touching an intraday low of $4,128 per troy ounce and logging an intraday loss of over 10%. The MCX Gold Rate also opened with a downside gap at ₹1,40,158 per 10 gm, touching an intraday low of ₹1,29,595 per gm.

Market Analysis

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The escalating US-Iran war has fueled crude oil prices, which have surged by over 60% in a month. The WTI Crude Oil Price has hit $100 per barrel, while the US Dollar Index has approached 100, up from around 96 before the US-Iran war. Market experts believe that rising crude oil prices are strengthening the US Dollar, which is putting pressure on gold prices.

Key Levels

The COMEX Gold Rate is expected to continue selling pressure, with key resistance zones at $4,400-4,500 and $4,650-4,900. A sustained move above $4,650 could extend the rally, while a break below $4,250 could accelerate weakness.

The MCX Gold Rate has broken below crucial support levels of ₹1,35,000 and ₹1,30,000, with the next support level placed at ₹1,27,000 per 10 gm.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Expert Insights

Sugandha Sachdeva, Founder of SS WealthStreet, notes that gold prices are navigating a complex macro environment, with geopolitical escalation and monetary tightening expectations pulling in opposite directions. Ponmudi R, CEO of Enrich Money, expects the selling pressure to continue, but notes that ongoing geopolitical tensions are providing intermittent safe-haven support, preventing a deeper downside in the immediate term.