New Delhi: Gold prices in India have taken a sharp hit, sliding dramatically over the past five days as global uncertainty tied to the escalating Iran–Israel–US conflict rattles investor sentiment and reshapes market expectations.
On Monday, gold futures for April delivery on the Multi Commodity Exchange dropped by Rs 8,089, or 5.6%, settling at Rs 1,36,403 per 10 grams. This fall extends a broader losing streak that has seen the precious metal shed more than Rs 22,000 in less than a week. Just days earlier, prices had already declined by nearly 9%, closing around Rs 1.44 lakh.
The correction marks a stark reversal from early 2026, when gold prices were hovering near Rs 1.9 lakh per 10 grams, reflecting a significant shift in market dynamics.
Global Pressures Weigh on Bullion
The downturn is not limited to India. Internationally, gold prices have mirrored the decline. On the COMEX, April futures slipped over 4% in the latest session to around $4,372 per ounce, extending a five-day losing streak. Over the past week, global gold prices have dropped close to 10%.
Market analysts attribute this decline to rising crude oil prices and persistent inflation concerns, both of which are influencing expectations around central bank policies. As inflation risks grow, the possibility of tighter monetary measures—including interest rate hikes—has dampened gold’s appeal as a safe-haven asset.
Currency and Inflation Add to Pressure
A stronger US dollar has further compounded the situation. The Indian rupee has weakened, nearing the 94 mark against the greenback, adding to imported inflation pressures. This currency movement has indirectly weighed on gold demand, as higher costs reduce buying appetite in domestic markets.
Experts note that the ongoing conflict in West Asia has created a complex environment where traditional safe-haven demand for gold is being offset by fears of inflation and aggressive policy tightening.
Analysts Caution Further Decline
Market watchers warn that gold may continue to face downward pressure in the near term. According to analysts, unless geopolitical tensions ease or inflation shows signs of cooling, prices could remain volatile and potentially extend losses into a fourth consecutive week.
Key indicators to watch include crude oil trends, central bank policy signals, and currency fluctuations—all of which are expected to play a decisive role in shaping gold’s trajectory.
For now, investors are being advised to stay cautious, as the interplay between global conflict and economic policy continues to unsettle one of the world’s most closely watched assets.
