Gold Prices Plummet to Rs 1.43 Lakh/10 Grams Amid Rising Inflation Fears from Iran Conflict; Is It Time to Cash Out?
The recent performance of gold and silver prices indicates a continuing downward trajectory on the Multi Commodity Exchange (MCX), marked by a decline for four consecutive sessions. As geopolitical tensions escalate following U.S. President Donald Trump’s announcement regarding the dissolution of the interim agreement with Iran, investors have become increasingly wary of potential inflationary pressures. As of Thursday, MCX silver futures for September 2026 delivery dipped by Rs 2,000 (1%) to Rs 2,21,502 per kg, while gold futures for August 2026 delivery fell by Rs 610 to Rs 1,43,101 per 10 grams. This shift reflects a broader trend of volatility that is being exacerbated by the delicate geopolitical climate in the Middle East, particularly concerning oil prices and their consequent effects on inflation expectations.
Market dynamics have shifted rapidly, with the U.S. military’s recent strikes on Iran contributing to a surge in oil prices, which settled nearly 5% higher on Wednesday. Concurrently, the U.S. dollar and equity markets exhibited weakness, underlining the sensitive link between geopolitical events and market stability. Analysts have noted that the rising crude oil costs could reignite inflationary fears, a sentiment echoed during the U.S. Federal Reserve’s recent meeting, where officials acknowledged broadening price pressures that may necessitate future interest rate hikes. Such developments create a complex environment for precious metals, which typically serve as safe havens during periods of heightened uncertainty.
According to market expert Manoj Kumar Jain, volatility in precious metals is projected to persist, influenced largely by fluctuations in crude oil prices and the dollar index. For Thursday, he identifies critical levels of support and resistance for gold at $4,055-4,010 and $4,122-4,150 per troy ounce, respectively, while silver is poised at a support range of $57.00-55.50 and resistance at $60.00-61.40. In the domestic market, gold has support at Rs 1,43,100-1,42,200 and resistance at Rs 1,44,400-1,45,150. Jain’s recommendations lean towards caution, advising against new purchases of gold and silver at current levels, though he sees potential merit for long-term investors to consider gradual accumulation amid ongoing corrections.
In summary, the immediate outlook for gold and silver prices remains tethered to geopolitical developments and their implications for global economic conditions. The intricate interplay between oil prices and investor sentiment towards inflation is critical, and as tensions in the Middle East continue to unfold, market participants should remain vigilant. Careful consideration of support and resistance levels will be essential for navigating the current market landscape, especially for those considering trading activities in precious metals.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)