Gold rate today: Gold prices have remained highly volatile since the onset of the US–Iran conflict, with the precious metal declining sharply by nearly 15% from its February 28, 2026 levels.
During the week, bullion remained under pressure, closing in the red in three out of five sessions and ending with an overall decline of around 2%. However, gold staged a sharp rebound toward the end of the week. The metal surged as much as 4.1% on Friday to cross $4,550 an ounce, recovering losses from the previous session and reflecting renewed buying interest at lower levels.
Gold has declined in recent weeks as escalating conflict pushed oil prices higher, fueling concerns that the Federal Reserve may raise interest rates to curb inflation. Such a scenario acts as a headwind for non-yielding assets like bullion.
What is driving gold prices?
Despite Friday’s uptick, bearish sentiment continues to weigh on gold as uncertainty persists over the chances of a ceasefire. The US and Israel carried out strikes on Iranian nuclear and steel facilities, prompting retaliation from Iran across the Persian Gulf, which dragged markets lower and pushed oil prices higher. The escalation followed Donald Trump’s pledge to avoid targeting Iran’s energy infrastructure for another 10 days, offering only brief relief to gold prices.
Further pressure came from Turkey’s central bank, which sold and swapped nearly 60 tonnes of gold over a two-week period, valued at over $8 billion. Strong central bank buying has been a key driver of bullion’s rally in recent years, and if other monetary authorities adopt a similar approach, it could slow overall demand and challenge the assumption that central banks are reluctant to offload gold.
According to a market expert, as quoted by Bloomberg, the economic fallout from the conflict in Iran is likely to weaken bullion demand from some central banks, while compelling others to liquidate gold reserves to meet dollar-denominated liabilities.
How’s gold likely to trade amid US-Iran ceasefire talks?
According to Ponmudi R, CEO of Enrich Money, the commodities market enters the week in a phase of measured stabilisation following last week’s sharp correction, particularly in precious metals where gold and silver witnessed aggressive profit booking after an extended rally.
He further noted that the recent decline has eased overbought conditions, with prices now attempting to rebuild momentum amid mixed global cues, including a firm US dollar and evolving geopolitical developments in the Middle East. While safe-haven demand has moderated slightly, underlying uncertainty continues to provide intermittent support to bullion.
“Overall, sentiment remains cautiously balanced, with markets transitioning from a corrective phase toward gradual recovery. A selective buy-on-dips approach near key support zones remains preferable, as the broader macro backdrop stays supportive, although near-term momentum is likely to remain influenced by currency movements and geopolitical developments,” Ponmudi said.
Meanwhile, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, believes that the yellow metal remained slightly positive, trading above $4425 with highs near $4475, supported by initial optimism around US–Iran talks. However, the sharp rise in crude continues to signal underlying market stress and inflation risks.
“Despite the bounce, sentiment remains cautious as macro triggers still favor higher interest rates. Overall, gold is likely to stay volatile with limited upside unless clarity emerges on inflation and geopolitics,” Trivedi added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
