As of 10:30 am, gold futures on the Multi-Commodity Exchange (MCX) were trading 1.7 per cent lower, down Rs 2,604 at Rs 1,47,500.

The weakness was also reflected in global markets, where spot gold fell 1.8 per cent, or USD 86.5, to trade at USD 4,671.50.

Stronger dollar dents gold appeal

The US dollar index regained the USD 100 mark to rise 0.6 per cent at the time of this report. A stronger dollar tends to reduce gold's appeal for foreign investors, as it makes the metal more expensive in other currencies.

In a televised address, Donald Trump warned that the United States would launch extremely intense strikes on Iran within the next two to three weeks, saying the country would be severely pushed back, while claiming that key military objectives were nearly achieved. This supported the US Dollar.

According to analyst Anindya Banerjee, the earlier decline in gold prices was driven by a dollar liquidity crunch triggered by rising oil prices. With oil now stabilising, both gold and silver are expected to regain strength.

He also highlighted that the long-term outlook remains positive, supported by expectations of economic stimulus measures.

Oil prices ease on optimism over US-Iran situation

Oil prices traded lower, influenced by optimism around easing tensions between the US and Iran. Markets are also reacting to the potential reopening of the Strait of Hormuz, a critical global oil supply route.

US President Donald Trump indicated that Iran's new leadership has requested a ceasefire. However, he emphasised that any decision would depend on the Strait of Hormuz being fully operational and secure.

Market Focus: Trump's Address Could Set Direction

Investors are now closely watching Trump's scheduled address to the nation at 01:00 GMT (06:30 AM IST). The outcome of this announcement could significantly influence the near-term trajectory of gold prices.

Market strategist Bob Haberkorn noted that gold could climb above USD 5,000 per ounce if de-escalation progresses and expectations of interest rate cuts strengthen.

Domestic Gold Demand Pattern

On the domestic front, analyst Nitin Kedia observed a notable shift in buying behaviour. Traditionally, investors purchased gold during price declines, but now buying activity is increasing even as prices rise.

Jewellery stores are witnessing a return to normal footfall, with stronger participation from younger buyers aged 25-30. There is also a visible shift in demand from coins and bars toward jewellery.

Rural demand is expected to improve further, driven by the ongoing harvest season and upcoming weddings. These factors are likely to provide additional support to gold consumption in the coming weeks.

City-wise 24K, 22K and 18K Gold rate (Per 10 Grams)

Gold prices are highly consistent across cities, with minimal variation of under Rs 200. Delhi and Lucknow show slightly higher rates, while Kolkata, Patna, and Trivandrum are marginally lower, indicating a largely uniform national pricing trend.

Today gold rate by IBJA

The India Bullion and Jewellers Association (IBJA) sets the daily "base price" of gold in India, which serves as the national benchmark for bullion rates. In simple terms, IBJA rates act as the reference price across the country. Below is a breakdown of gold prices based on different purity levels (carats) as defined by IBJA.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)

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