Gold Price Drops for Second Straight Week Amid Ongoing US-Iran War

Key Figures:

• $5,085/oz: Current COMEX gold rate
• $5,158.70/oz: Last Friday's close
• $5,100/oz: Psychological support level
• $5,075-$5,080/oz: Crucial support level
• $5,000/oz: Next crucial support level

Market Analysis:

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The gold price is set to drop for the second straight week, with the COMEX gold rate today trading at $5,085/oz, a decrease of $73/oz from last Friday's close of $5,158.70/oz. This marks the first time since November 2025 that the gold price has declined for two consecutive weeks.

The ongoing US-Iran war has weighed on investors' appetite for gold, with choppy trading replacing a longtime rally. Higher energy prices and rising inflationary concerns have reduced expectations that the Federal Reserve and other central banks will cut interest rates, which is typically a negative for precious metals. The latest US jobless report has also lessened the chance of borrowing costs being lowered.

Technical Outlook:

The COMEX gold rate today has slipped below the psychological $5,100/oz mark, a big setback for bulls. The gold rate is currently trading around the crucial support level of $5,080-$5,075/oz. Breaking below this support would signal more selling pressure, as the US-Iran war is lending strength to the US dollar by pushing crude oil prices higher.

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

Market Expectations:

According to experts, the chances of a recovery in gold price today are unlikely. A prolonged conflict and persistently high crude prices would add further pressure to the metal. The International Energy Agency has stated that the war is creating an unprecedented supply disruption in oil markets, which would further weigh on gold prices.

Indian Market:

In the Indian market, the MCX gold rate today is trading in the ₹1,59,500 to ₹1,61,000 range, reflecting consolidation following the recent geopolitical-driven rally. Strong buying interest remains visible in the ₹1,56,000 to ₹1,57,000 demand zone, which continues to act as a key structural support level. As long as prices remain above this base, the medium-term bullish outlook remains intact.