Gold Rate Dips Amid Escalating US-Iran Tensions and Rising Oil Prices
Gold Rate Today: US-Iran War Escalation Pushes Prices Down
The ongoing US-Iran war has had a significant impact on the global economy, with crude oil prices skyrocketing after the failure of ceasefire talks in Islamabad over the weekend. As a result, gold and silver rates today have come under selling pressure during the early morning session on Monday.
The MCX gold rate today opened with a downside gap at ₹1,51,547 per 10 gm and touched an intraday low of ₹1,51,457 per 10 gm within a few minutes of the opening bell. Similarly, the COMEX gold price today is oscillating around $4,740 per ounce, around one percent below Friday's close.
The escalation of the US-Iran war has put the fragile ceasefire at risk and is likely to prolong the conflict, according to Paras Gupta, head of discretionary portfolio management in Asia at Union Bancaire Privée. The gold price is under pressure due to soaring crude oil prices, as crude oil prices are rising due to the escalation of the US-Iran war following the failure of ceasefire talks in Islamabad.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
| Market | Price Movement |
|---|---|
| MCX Gold Rate | Down 1.4% |
| COMEX Gold Price | Down 1.1% |
The US government has announced a blockade of the Strait of Hormuz, which will further fuel crude oil prices. This development could force the US Fed to go hawkish to address inflationary challenges, further pressuring gold prices.
Key Levels to Watch
The MCX gold rate today is holding above the important support band of $4,650-$4,600, which coincides with recent swing lows and continues to act as a near-term demand zone. A breakdown below this support region could extend the correction toward $4,400-$4,300, where stronger buying interest is expected to emerge.
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
| Timeframe | Support Band | Potential Decline |
|---|---|---|
| Daily | ₹1,48,000-₹1,46,000 | ₹1,40,000-₹1,36,000 |
| Intraday | ₹1,51,547-₹1,51,457 | ₹1,50,000-₹1,49,000 |
Despite the early Monday decline, bullion is expected to support despite the early decline, as the shift in focus on slowing economic growth countered the risk of higher inflation. This trend should continue to support bullion, according to Daniel Hynes, senior commodity strategist at ANZ Banking Group Ltd.
Investor Takeaway
Investors should be cautious of market volatility due to geopolitical tensions.
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