Gold Price Prediction: War tensions push yellow metal down by Rs 1,900 from peak. Turbulence ahead?

Amid geopolitical tensions and a war scenario, Gold August futures contracts at MCX opened flat at Rs 99,175/10 grams, which is up merely by Rs 66 or 0.07%. However, the prices of the yellow metal have slipped by Rs 1,900 from their all-time high of Rs 1,01,078/10 gm.

However, silver July futures showed strength, opening higher by Rs 503 or 0.47% at Rs 1,06,727/kg.

Internationally, gold and silver prices hovered near $3,360 and $36 per ounce, respectively, on Monday, remaining volatile as tensions escalated in the Middle East after the U.S. joined Israeli strikes on Iran’s nuclear sites.

President Trump warned of further military action if Iran resists peace, intensifying fears and boosting demand for safe-haven assets.

On Friday, gold and silver settled on a weaker note in the domestic market while settling on a mixed note in the international markets. Gold August futures contract settled at Rs 99,109 per 10 grams with a loss of 0.22%, and silver July futures contract settled at Rs 1,06,224 per kilogram with a loss of 1.09%.

Gold and silver showed very high price volatility and slipped from their highs amid the hawkish policy stance of the U.S. Fed. The U.S. Fed maintained a status quo on interest rates and also downgraded growth outlooks.They also show concerns about higher inflation due to U.S. trade tariffs.Gold and silver also plunged after the U.S. President said that it will take two weeks to decide whether to intervene in the Israel-Iran war or not. However, the US stroke on Iran’s three main nuclear facilities over the weekend.

This comes at a fragile moment for the global economy.

The dollar index is also facing resistance at higher levels and supporting prices of gold and silver. Today, the US Dollar Index, DXY, was hovering near the 99.01 mark, gaining 0.31 or 0.31%.

“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geo-political tensions and Chairman’s testify but gold prices could hold its support level of $3,280 per troy ounce and silver prices could also hold $34.40 per troy ounce levels on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

“Investors now turn to upcoming U.S. economic data and speeches from Federal Reserve officials, including a two-day congressional testimony by Chair Jerome Powell, to gauge the Fed’s response amid rising risks from tariffs and conflict,” believes Rahul Kalantri, VP Commodities at Mehta Equities.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 98,660-98,280 and resistance at Rs 99,400-99,850
• Silver has support at Rs 1,05,400-1,04,650 and resistance at Rs 1,07,000-1,07,800

Jain suggests buying silver around Rs 95,500 with a stop loss of Rs 95,000 for a target of Rs 96,650.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,216/8 grams while pure gold (24 carat) prices stand at Rs 60,968/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,576/8 grams while pure gold (24 carat) prices stand at Rs 61,416/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,936/8 grams while pure gold (24 carat) prices stand at Rs 60,744/8 grams.

Also read: Why stock market is falling today? Key factors behind 900-point Sensex crash, Nifty below 24,850

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 56,880/8 grams while pure gold (24 carat) prices stand at Rs 60,576/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)