SRINAGAR: Gold prices fell sharply by Rs 1,900 per 10 grams from their all-time high of Rs 1,01,078 amid heightened geopolitical tensions and concerns over the global economy. As per The Economic Times, Gold August futures opened flat on Monday at Rs 99,175 per 10 grams, gaining a marginal Rs 66 or 0.07 per cent, but continued to trade below recent highs.
In contrast, silver July futures showed strength, opening Rs 503 higher at Rs 1,06,727 per kilogram, marking a 0.47 per cent gain. On the global front, gold and silver hovered near $3,360 and $36 per ounce respectively, remaining volatile as fresh escalations unfolded in the Middle East. The situation intensified after the United States reportedly joined Israeli strikes on Iran’s nuclear facilities, pushing safe-haven demand while simultaneously unsettling markets.
The market’s jittery mood was compounded by US President Donald Trump’s warning of further military intervention if Iran resists peace efforts. Analysts are closely watching Washington’s moves, especially after reports of targeted strikes on three of Iran’s nuclear facilities over the weekend, as highlighted by The Economic Times.
This dip in precious metal prices comes amid heightened volatility triggered by the US Federal Reserve’s recent hawkish policy stance. The Fed maintained interest rate levels but downgraded its growth outlook while voicing concerns over inflation, fuelled in part by new trade tariffs.
Further influencing metal markets is the US Dollar Index, which was hovering near 99.01 on Monday after a 0.31 per cent gain, capping gold’s potential upside but providing partial support due to global uncertainty.
Manoj Kumar Jain of Prithvifinmart Commodity Research told The Economic Times, “We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index, geo-political risks, and upcoming testimonies by the Fed Chairman. However, gold could hold support at $3,280 per troy ounce, while silver may find a base at $34.40.”
