Gold rate today: Precious metals have declined by over 10% globally since the onset of the US–Iran war on February 28. A key reason behind this drop has been the surge in crude oil prices.
Meanwhile, back home, domestic spot gold prices have fallen by around 5% since the onset of the US-Iran war, according to MCX data. However, on a year-to-date basis, the yellow metal remains up 14%, building on the sharp 75% rise seen in 2025.
On Monday, gold prices fell sharply on the Multi-Commodity Exchange of India, weighed down by a stronger US dollar and as rising tensions around the Strait of Hormuz pushed oil prices higher and rekindled inflation worries.
Gold futures for June 2026 delivery were down ₹1,590, or 1%, to ₹1,53,018 per 10 grams.
Meanwhile, on the international front, spot gold declined 0.4% to $4,809.71 per ounce, after touching its lowest level since April 13 earlier in the session. US gold futures for June delivery dropped 1% to $4,829.40.
Why is gold under pressure today?
Brent crude prices surged over 6% today, crossing the $95 per barrel level, following reports that Iran has once again shut the Strait of Hormuz.
A rise in crude oil prices typically boosts demand for the US dollar, since oil is predominantly traded in dollar terms. This strengthens the currency and, in turn, puts downward pressure on gold prices, according to market experts.
Even though the two-week ceasefire between the US and Iran is set to last until Tuesday, the situation in West Asia remains highly fragile. According to media reports, Iranian forces launched drone attacks on some US military vessels after the US seized an Iranian-flagged cargo ship attempting to bypass a naval blockade near the Strait of Hormuz.
Tehran announced it will not take part in a second round of talks that the United States had planned to begin before the ceasefire ends on Tuesday.
Meanwhile, the prolonged Iran conflict has caused a severe disruption in energy supplies, fuelling inflationary pressures and increasing the likelihood that central banks will keep interest rates unchanged or even hike them — a negative factor for non-yielding assets like bullion.
Is it the right time to buy gold?
Anuj Gupta, a SEBI-registered research analyst, believes that this is the right time to start investing in gold from a long-term perspective.
“Expectations of easing tensions between the United States and Iran could further support demand for the metal. Additionally, consistent gold purchases by China and steady inflows into gold ETFs are likely to provide continued support to gold prices,” Gupta said.
Brokerage firm Axis Direct said in a note that whether the global economy faces stagflationary heat or rate cut relief, the macroeconomic architecture provides a structural tailwind for gold.
Additionally, the firm anticipates a potential upside of up to 15% in gold prices from the current base level in bullion, setting a target price range of ₹1,70,000 to ₹1,85,000 for 2026.
“Following the extreme stress test of Q1 2026, the underlying pillars of demand-central bank accumulation, ETF inflows, and macro-economic hedging remain fully intact. Gold remains a fundamental portfolio necessity,” the firm said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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