Gold Rate Slumps 9% Amid Escalation of US-Iran Tensions, Ceasefire Negotiations Collapse

Gold Prices Plummet 9% Since US-Iran War Began

The price of gold has witnessed a significant decline of over 9% since the beginning of the US-Iran war on February 28. Market analysts expect further near-term downside in gold prices as talks between the two countries failed to yield a deal. However, the precious metal saw a weekly gain of over 2% as the market anticipated a positive update on US-Iran truce talks.

On Friday, spot gold held steady at $4,761.79 per ounce, while U.S. gold futures closed 0.6% lower at $4,787.40. The failure of US-Iran war ceasefire talks has had a significant impact on gold prices, with market analysts predicting a flat to gap-down opening if geopolitical tensions escalate further.

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According to Anuj Gupta, SEBI Registered Research Analyst, gold is likely to witness a flat to gap-down opening if geopolitical tensions escalate further. He added that gold may witness some profit booking or mild correction amid expectations of tighter monetary policy by central banks in response to persistent inflation.

Ponmudi R, CEO of Enrich Money, believes that sentiment appears cautiously optimistic, with a selective buy-on-dips approach favored near key support levels. He noted that volatility is expected to persist, given the evolving global backdrop and ongoing geopolitical developments.

On the technical outlook, Ponmudi said that COMEX Gold is trading near the $4,750–$4,800 zone after witnessing a steady recovery from last month's sharp decline. Recent price action suggests that the metal is entering a stabilization phase, with prices attempting to build a short-term base after a period of heightened volatility.