Gold Price Alert: Strong Dollar Puts Pressure on Gold, Risk of Falling to ₹1.27 Lakh!
Gold prices are under pressure as the US dollar strengthens and fears of inflation rise, fueled by soaring crude oil prices. Last week, global gold markets saw a sharp decline. In India, MCX gold fell from around ₹1,60,000 at the start of the US-Iran conflict to ₹1,44,825 per 10 grams. On the international front, COMEX gold ended at $4,574.90 per troy ounce.
Geopolitical Tensions Adding to Market Volatility
The ongoing US-Iran conflict is playing a significant role in market dynamics. Sugandha Sachdeva, Founder of SS WealthStreet, noted that Israel’s strikes on Iran’s South Pars gas field, followed by Iran’s retaliatory attacks on energy infrastructure in key Gulf countries, have spiked global energy risk premiums. This surge in crude oil prices is feeding inflation concerns worldwide, especially through higher fuel and logistics costs.
Central Banks Stay Cautious to Hawkish
Despite the geopolitical turmoil, gold has remained under pressure. Anuj Gupta, a SEBI-registered market expert, explained that rising crude prices are likely to trigger global inflation, prompting central banks to either maintain or raise interest rates. Last week, the US Federal Reserve, the Bank of Japan, the Bank of Canada, and the Bank of England all signaled a cautious-to-hawkish approach.
Sugandha Sachdeva added, “While markets had anticipated rate cuts, the narrative has shifted toward ‘higher-for-longer’ interest rates, with possible hikes if inflation remains persistent.” This cautious stance is limiting gold’s appeal as an inflation hedge.
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Gold Price Outlook
Market analysts expect the current downtrend to continue. Jateen Trivedi, VP Research — Commodity & Currency at LKP Securities, said, “Sentiment remains weak as macroeconomic triggers are unfavourable. Elevated interest rates, ongoing geopolitical tensions, and firm crude prices are keeping inflation concerns alive, limiting upside potential in gold. In the near term, we expect gold to trade between ₹1,40,000 and ₹1,47,000, with a possible fall toward ₹1,27,000.”
In summary, gold investors are navigating a complex environment where strong global currencies, inflation worries, and geopolitical uncertainty are driving volatility. Traders should remain cautious as the yellow metal faces downward pressure in both domestic and international markets.
Content Credit Goes To : Tredixo
