This move followed remarks by Donald Trump on the US-Iran conflict, which reignited geopolitical tensions.

At 2:30 AM (IST), spot gold declined 1.7 per cent, falling by USD 82 to settle at USD 4,676.28. During the session, prices dropped as low as USD 4,554.55 before recovering slightly.

In the domestic market, on the Multi-Commodity Exchange (MCX), gold futures settled nearly flat at Rs 1,49,650, despite slipping to an intraday low of Rs 1,47,100.

Analyst View: Short-term pressure on bullion

"The US may escalate tensions further to show strength. This could put short-term pressure on gold and silver," said Amit Suresh Jain, Founder and CEO of Intelisys Ventures.

Strong US dollar weighs on gold

The US dollar hovered close to the 100 mark against a basket of currencies. A stronger dollar makes dollar-denominated bullion less attractive to foreign buyers, putting pressure on gold prices.

Market participants moved toward the dollar after Trump said the US would ramp up operations against Iran in the coming weeks, adding that Washington was close to achieving its objectives.

"We are going to hit them extremely hard over the next two to three weeks… We have all the cards; they have none," he said, noting that discussions were ongoing.

Oil prices surge on rising tensions

These developments also supported oil prices, with crude hovering close to USD 110 per barrel. Prices jumped as much as 11 per cent in the previous session.

Brent crude futures settled 8 per cent higher at USD 109.24, while WTI crude futures traded above USD 110.

Rising oil prices increase overall costs, contributing to inflation. Higher inflation reduces the likelihood of interest rate cuts, which in turn puts additional pressure on gold prices.

Gold's Trend

Gold prices are likely to remain highly volatile in the short term, with positive developments triggering sharp upward moves and negative news leading to equally steep declines. This pattern is expected to persist for some time, said Amit Goyal, Chief Global Strategist and Co-founder of Pace 360.

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

City-wise gold prices show minor regional variation, with Chennai being the highest across all purities. Delhi and Lucknow follow closely, while most other cities cluster at similar levels, indicating broadly stable nationwide pricing with marginal local differences.

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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