Gold rate today: Yellow metal witnesses a steepest weekly decline since 1983, as escalating conflict in the Middle East pushed energy prices higher and dampened expectations of interest-rate cuts.
Gold prices, which declined more than 11% over the week, have recorded losses every week since the US and Israel launched strikes on Iran last month, highlighting an unusual trend amid heightened geopolitical tensions.
The decline comes amid a strengthening US dollar, while investors have been offloading stocks and bonds due to concerns that rising energy costs could fuel inflation and weigh on global growth.
On Friday, gold dropped 3.1% to $4,508.96 an ounce, putting it on track for an eight-day losing streak, the longest since October 2023.
Why are gold prices falling?
The dollar and US Treasury yields continued to rise following a Reuters report that revealed the American military is deploying thousands of additional marines and sailors to the Middle East. A stronger dollar reduces the appeal of dollar-denominated bullion for investors holding other currencies.
The ongoing US-Israeli conflict with Iran has resulted in thousands of casualties, spread across the Middle East, and weighed on the global economy since the joint offensive began on February 28. Iran’s extended blockade of the Strait of Hormuz could keep energy prices elevated and stoke inflationary pressures.
Meanwhile, bullion-backed ETFs are on track for a third consecutive week of outflows, with holdings declining by more than 60 tonnes over this period, according to a Bloomberg report.
Despite the recent correction, gold prices are still up around 4% so far this year. The metal had earlier touched a record high of just under $5,600 per ounce in late January, driven by strong investor demand, central bank purchases, and concerns about potential threats to the Federal Reserve’s independence under President Donald Trump.
Will gold prices crash further amid ongoing US-Iran war?
According to Ponmudi R, CEO of Enrich Money, precious metals are set to enter the upcoming week under visible pressure, following a sharp corrective phase driven by profit-booking, a stronger US dollar, and mixed signals from ongoing Middle East geopolitical developments.
He further noted after testing previous highs, precious metals have entered a pullback phase, with prices now moving toward key support zones as caution dominates sentiment amid elevated event risks.
“A selective buy-on-dips strategy near strong support zones is preferred, as longer-term macro tailwinds remain supportive, although near-term pressures from dollar strength and any signs of geopolitical easing could limit upside momentum,” Ponmudi said.
On the technical outlook, he said that the COMEX Gold has undergone a sharp corrective move after retesting its previous record-high resistance zone of $5,300–$5,500, and is currently trading in the $4,450–$4,520 range.
“On the downside, immediate support is placed in the $4,250–$4,400 zone; a decisive breakdown below this range could open the door for a deeper correction toward $3,800–$4,000. In the near term, momentum remains neutral to slightly bearish, although the broader structure continues to reflect higher lows, indicating underlying strength. Sustaining above the $4,400 level remains critical for a potential recovery toward $4,700–$4,800. Overall, the broader bullish bias remains intact unless key support levels are decisively breached, with macroeconomic factors continuing to influence price direction,” Ponmudi said.
Meanwhile, Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, believes that the broader sentiment continues to remain weak, as key macro triggers are still unfavorable. Interest rates are expected to stay elevated, while ongoing geopolitical tensions are keeping crude prices firm, sustaining inflation concerns and limiting upside in gold.
“Overall, gold is likely to remain weak with heightened volatility, with a near-term trading range seen between ₹140000– ₹147000,” 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.
