Gold Falls ₹2,800 To ₹1.62 Lakh/10g, US-Iran Tensions And Strong Dollar Weigh On Bullion

Mumbai: Gold prices declined sharply in the national capital on Tuesday as rising tensions between the US and Iran pushed investors towards the US dollar.

According to the All India Sarafa Association, gold of 99.9% purity fell by Rs 2,800 to Rs 1,62,400 per 10 grams, including taxes. In the previous session, the yellow metal had closed at Rs 1,65,200 per 10 grams.

Market experts said uncertainty over geopolitical developments and lack of progress in diplomatic talks kept traders cautious.

Investors Stay Careful Amid Global Tensions

Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, said gold prices traded in a narrow range as investors avoided taking aggressive positions.

The market remained worried after reports of fresh US military strikes in southern Iran despite ongoing talks in Qatar aimed at maintaining a ceasefire.

The US Central Command described the strikes as defensive actions and clarified that they did not indicate an end to the ceasefire arrangement.

At the same time, Iran’s Islamic Revolutionary Guard Corps claimed that it had shot down a US drone that entered Iranian airspace. This further increased uncertainty in global markets.

Silver Prices Rise

Unlike gold, silver prices moved higher. Silver gained Rs 2,000 to reach Rs 2,73,000 per kilogram, compared to Rs 2,71,000 per kg in the previous session.

Analysts said investors are closely monitoring crude oil prices, US Treasury yields and dollar movement for further direction in the precious metals market.

International Market Under Pressure

In the global market, spot gold fell nearly 1% to $4,534.69 per ounce, while silver slipped more than 2% to $76.49 per ounce.

Experts said higher crude oil prices are raising fears of inflation, which could force central banks to maintain tight monetary policies for a longer period.

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said investors are now waiting for upcoming US Core PCE inflation and GDP data, which could influence the Federal Reserve’s future policy decisions and bullion prices.