Indian Gold Prices Plummet 17% From Record High Amid Global Market Volatility Following US Payroll Data Release
Global Markets Remain Cautious Amid US-Iran War Tensions
Despite the US-Iran war entering its fifth week, the gold price has logged a 2.20% weekly gain, with the COMEX gold price finishing at $4,679.70/oz and the MCX gold rate ending at ₹1,49,650 per 10 gm. This has resulted in the gold price in India being around ₹31,000, or 17% below the record high of ₹1,80,779 per 10 gm.
Market experts attribute the tepid gold price rally to the strengthening of the US dollar and renewed inflation fears following Donald Trump's address to the nation. However, better-than-expected US payroll jobs data is expected to cool inflation fears and resilience in the US economy against all odds, supporting the dollar and limiting upside in bullion.
Key Factors Influencing the Gold Price
The gold price rally is being capped by the surge in crude oil prices, which has intensified inflation concerns and altered the traditional safe-haven dynamics. According to Sugandha Sachdeva, Founder of SS WealthStreet, gold prices have corrected by nearly 7% since the onset of the Iran conflict on 28th February, highlighting a shift in investor preference towards the US dollar as the primary safe-haven asset.
| Comparison of Gold Price Movement | US-Iran War | Global Markets |
|---|---|---|
| Change in Gold Price | -7% | 2.20% |
| Crude Oil Price | 10% | N/A |
Outlook for the Gold Price
Ponmudi R, CEO of Enrich Money, believes that the lack of strong follow-through buying suggests global markets remain in a wait-and-watch mode, with sentiment balanced between caution and stability. The real impact will depend on how geopolitical developments evolve from here, as markets are currently pricing in uncertainty without fully committing to a directional trend.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Technical Analysis
The COMEX gold rate today is holding above key short-term moving averages while continuing to face resistance in the $4,700–$4,750 zone. According to Ponmudi R of Enrich Money, a decisive breakout above $4,800 could extend the move toward $4,850, with further upside potential toward $4,900, where strong supply is expected.
| Technical Analysis of Gold Price | Resistance Zone | Support Zone |
|---|---|---|
| COMEX Gold Rate | $4,700–$4,750 | $4,400 |
| MCX Gold Rate | ₹1,57,600 to ₹1,58,800 | ₹1,44,000 to ₹1,45,000 |
Investor Takeaway
Gold prices may be affected by global market volatility and US economic data.
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