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

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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.

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

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.