Gold rate today:Gold prices have slipped below the psychological ₹1.60 lakh in India amid no signs of de-escalation in the US-Iran war. Gold prices in India continued to decline, putting the metal on track for a second consecutive weekly loss as escalating tensions involving Iran, Israel, and the United States kept global markets volatile and unsettled. On Friday, MCX gold prices settled marginally lower at ₹₹1,58,400 per 10 grams.
Meanwhile, in the international front, the COMEX gold rate was hovering around $5,120/oz.
What’s driving gold prices in India?
Gold’s rally has lost momentum since the US-Israel conflict with Iran began nearly two weeks ago, with no clear resolution in sight.
Donald Trump said the US had intensified strikes on Iran to unprecedented levels, signaling that the conflict — which is disrupting energy flows and global markets — is unlikely to ease anytime soon.
Meanwhile, surging energy prices and mounting inflation concerns have significantly lowered expectations that the Federal Reserve and other central banks will begin cutting interest rates.
Fresh US consumer spending data released on Friday also showed that spending barely increased in January amid weaker-than-expected economic growth, reinforcing worries that inflationary pressures were already building even before the attacks on Iran.
“Gold price has declined mainly due to stronger US Dollar which is bolstered by concerns over a prolonged conflict in the Middle East and rising oil prices. Also, rising US Treasury yields have put additional pressure on the Gold price. Bond yields have surged to 4.27%,” said Aamir Makda, Commodity & Currency Analyst at Choice Broking.
What should investors do?
Makda further said that moderately bearish trend in gold price in upcoming sessions can be expected, meanwhile, suggested traders to look for ‘sell on rise’ opportunity.
“Gold price in India has dropped marginally from its record-high, however price is still above its key moving averages ie 50, 100 and 200-DEMA levels placed at 153244, 143051 and 128085 respectively. We are expecting Moderately Bearish trend in Gold price in upcoming sessions and traders are advised to look for Sell-on-rise opportunity,” Aamir Makda said.
Meanwhile, Ponmudi R, CEO of Enrich Money, believes that the momentum indicators currently reflect a temporary neutral to mildly bearish tilt in the short term, as the market continues to trade below the recent swing resistance.
On the technical outlook of gold prices, Ponmudi added, “As long as prices hold above ₹1,58,000, gold retains the potential to move towards ₹1,62,000- ₹1,65,000 initially, and possibly retest higher resistance around ₹1,68,000- ₹1,70,000 if bullish catalysts strengthen.
However, a decisive break below ₹1,57,000 could intensify downside pressure, potentially extending the corrective move toward the ₹1,55,000- ₹1,50,000 support zone. Despite this near-term correction, the broader bullish bias remains intact as long as key structural support levels remain unbroken, supported by favorable macroeconomic tailwinds.”
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.
