Gold Prices Plunge ₹1,800/10 gm in India Amid Inflation Concerns and US-Iran Tensions.
Gold prices are currently under considerable pressure, driven by a renewed fear of inflation linked to rising crude oil prices and ongoing geopolitical tensions, particularly the US-Iran conflict. The MCX gold rate opened with a downside gap, starting at ₹1,60,651 per 10 gm and reaching an intraday low of ₹1,59,826, marking a loss of over ₹1,800 relative to Friday’s closing price of ₹1,61,634. In the international markets, COMEX gold also opened lower, touching $5,021.59 per ounce, reflecting a decline of roughly 2%. Market sentiment has shifted, placing additional downward pressure on precious metals alongside equities and bonds.
The current market dynamics are influenced significantly by global economic trends, notably the strengthening US dollar. Analysts, including Sugandha Sachdeva of SS WealthStreet, highlight that the increase in crude oil prices could rekindle inflationary pressures, which has delayed expectations for interest rate cuts by the US Federal Reserve to around September or October. This delay has caused gold to face stiff competition from a strong dollar, which limits its appeal as a safe-haven asset. Furthermore, the trend of liquidating gold positions to cover margin calls during periods of market volatility has exacerbated the selling pressure on gold.
From a short-term perspective, traders and investors should monitor key support and resistance levels closely. Anuj Gupta, a SEBI-registered expert, notes that immediate support is at ₹1,58,000 per 10 gm, with a crucial breach below this level leading to a potential drop to ₹1,50,000. On the upside, ₹1,65,000 serves as significant resistance. For bullish momentum to re-emerge, gold prices must sustain above $5,280 per ounce globally and ₹1,65,000 domestically, which could indicate the next phase of a price rally. As such, market participants are advised to remain vigilant, adjusting their strategies based on these critical levels and global economic indicators.
Source: Market Source
(Expert Note: This report was independently prepared by the Wealthova Commodities team.)