Gold rate today: Gold prices have remained volatile since the beginning of US-Iran war. The precious metal has fallen over 16% since the onset of tensions in the Middle East.
Gold surged to $5,400-per-ounce mark on March 2, 2026, driven by escalating US-Israel strikes on Iran and the effective shutdown of the Strait of Hormuz. From that peak, prices tumbled sharply to around $4,099 within the same month—marking a steep correction of roughly 24% in just a few weeks. Since then, gold has recovered, rebounding to the $4,600 range.
On Wednesday, spot gold declined 0.4% to $4,574.26 per ounce, after touching its lowest level since April 2 in the previous session. Meanwhile, US gold futures for June delivery also slipped 0.4% to $4,587.70.
Back home, MCX gold futures for June were marginally higher by 0.03% at ₹1,50,077 per 10 grams in early morning session on Wednesday.
What’s driving gold prices today?
Gold slipped slightly on Wednesday as rising oil prices stoked inflation concerns, while investors looked ahead to comments from US Federal Reserve Chair Jerome Powell for clues on how the Iran conflict could affect the economy.
Brent crude climbed above $112 per barrel following reports that the United States plans to extend its blockade of Iranian ports. Efforts to resolve the conflict appeared stalled, with US President Donald Trump expressing dissatisfaction with Tehran’s latest proposal.
Trump also said on Tuesday that Iran is keen for the Strait of Hormuz to be reopened quickly. However, he remains unhappy with Iran’s recent proposals, citing their failure to address issues related to its nuclear program.
“Gold is facing pressure due to stalled US-Iran peace negotiations and the continued closure of the Strait of Hormuz, both of which have heightened inflation concerns. Investors are increasingly factoring in the likelihood that central banks may keep interest rates higher for an extended period or even tighten further, which is weighing on non-yielding assets like bullion,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
Can gold prices reach $5,000?
Global brokerage firm Goldman Sachs said it still expects gold prices to reach $5,400 by the year-end as central bank diversification continues.
However, “gold remains vulnerable to further liquidation should Hormuz disruptions persist and bond, or equities, correct further,” the bank added.
Meanwhile, Anindya Banerjee, Head of Commodity and Currency Research, Kotak Securities, believes that the next strong up-move to play out, towards a fresh all-time high of $6,000.
“But this $5,000 is roughly a 12-month story, not a near-term move. So it is very much achievable — the runway only opens up once the oil and geopolitical dust settles,” Banerjee said.
On the other hand, Hareesh V, Head of Commodity Research, Geojit Investments Limited, said that gold may not immediately surge to $5,000, as ongoing geopolitical tensions in West Asia continue to weigh on investor sentiment.
“The long‑term outlook remains firmly bullish, supported by strong fundamentals such as central bank demand, inflationary pressures, and limited supply growth. While short‑term volatility is inevitable, gold’s role as a safe‑haven asset ensures that it will remain a cornerstone of wealth preservation, with potential for significant upside once global uncertainties ease,” Hareesh 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.
