Gold Prices Dip Amid Geopolitical Tensions

On Thursday, gold prices took a hit, dropping by Rs 6,004 to settle at Rs 147,704 per 10 grams on the multi-commodity exchange. This decline comes as rising geopolitical tensions in West Asia and a strengthening U.S. dollar dampened investor optimism. It’s a notable shift after a four-day rally, with June’s contract falling 3.91%.

In the international arena, Comex gold futures also fell, declining by $194.70, or 4.05%, to $4,618.40 per ounce, after previously gaining ground for four days in a row. Analysts attributed this downturn to a rebound in the dollar, which followed comments from U.S. President Donald Trump that suggested the ongoing conflict with Iran could escalate further.

Jigar Trivedi, a senior research analyst at IndusInd Securities, noted that the U.S. dollar’s rally was linked to Trump’s warnings about potential military actions in Iran over the next two to three weeks. In a White House address, Trump remarked that key objectives in Iran were nearing completion but didn’t provide a timeline for de-escalation or comments on the situation in the Strait of Hormuz, which has been causing turbulence in global markets.

Trivedi emphasized that expectations surrounding rising oil prices, coupled with inflation concerns, are prompting a shift in monetary policy outlook. “Traders have now fully integrated the likelihood of a rate cut being pushed back to 2026, a significant turnaround from prior expectations of two rate cuts soon after the conflict began,” he commented.

Current Gold Prices in Various Cities

Chennai: Rs 15,218 for 24K, Rs 13,950 for 22K, Rs 11,635 for 18K.

Mumbai: Rs 14,897 for 24K, Rs 13,655 for 22K, Rs 11,173 for 18K.

Delhi: Rs 14,912 for 24K, Rs 13,670 for 22K, Rs 11,188 for 18K.

Kolkata: Rs 14,897 for 24K, Rs 13,655 for 22K, Rs 11,173 for 18K.

Bangalore: Rs 14,897 for 24K, Rs 13,655 for 22K, Rs 11,173 for 18K.

Hyderabad: Rs 14,897 for 24K, Rs 13,655 for 22K, Rs 11,173 for 18K.

Ahmedabad: Rs 14,902 for 24K, Rs 13,660 for 22K, Rs 11,178 for 18K.

Jaipur: Rs 14,912 for 24K, Rs 13,670 for 22K, Rs 11,188 for 18K.

Lucknow: Rs 14,912 for 24K, Rs 13,670 for 22K, Rs 11,188 for 18K.

Bhubaneswar: Rs 14,897 for 24K, Rs 13,655 for 22K, Rs 11,173 for 18K.