Gold Prices in India Crash to Rs 1.36 Lakh Amid Geopolitical Turmoil
In a dramatic market shift, domestic gold prices have suffered their sharpest decline in five days, plummeting to Rs 1.36 lakh per 10 grams. This steep fall, amounting to over Rs 22,000 per 10 grams, is driven by a confluence of global factors including escalating tensions in the Iran-Israel-US conflict, widespread selloffs, mounting inflation concerns, and significant currency pressures.
Market Data Reveals Steep Declines
On the Multi Commodity Exchange (MCX), April gold futures experienced a severe drop of Rs 8,089, or 5.6 per cent, settling at Rs 1,36,403 per 10 grams on Monday. This continues a week-long slump, following last week's decline of Rs 13,974, or 8.82 per cent, which closed at approximately Rs 1.44 lakh per 10 grams. Analysts are cautioning that this downward trajectory could extend further, marking the fourth consecutive week of losses for the precious metal.
Analyst Insights on the Gold SlideAamir Makda, Commodity & Currency Analyst at Choice Broking, noted, "Gold resumed with a gap down today and is likely to continue its downside momentum amid ongoing tensions in West Asia, which have intensified inflation fears and rate hike expectations." This sentiment is echoed across the market as investors grapple with uncertainty.
Global Gold Markets Mirror Domestic Trends
The decline is not isolated to India. On the Comex, April gold futures fell by USD 202.4, or 4.42 per cent, to US$ 4,372.5 per ounce, marking a fifth straight session of losses. Over the past week, international gold has dropped nearly 10 per cent, with surging oil prices and inflation concerns prompting investors to reassess expectations of central bank rate policies.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, explained, "Gold fell below US$ 4,400 per ounce as the ongoing Middle East conflict heightened inflation fears, while major economies face pressure to boost liquidity, including through gold sales." This global selloff is compounded by a firm US dollar, which has pressured the Indian rupee to near 94 against the greenback, adding to inflationary pressures and further weighing on safe-haven assets like gold.
Historical Context and Future Outlook
Earlier in the year, gold prices in India were close to Rs 1.9 lakh per 10 grams in January, highlighting the severity of the recent crash. Reports indicated that 24K gold briefly touched levels near Rs 1,90,000 per 10g in late January 2026, with March 2026 recording high points around Rs 1.36 lakh per 10g.
Analysts Warn of Continued VolatilityAnalysts expect the downward trend in gold prices to persist in the near term unless global inflation fears ease or geopolitical tensions stabilize. Investors are advised to closely monitor key indicators such as crude oil prices, central bank actions, and currency movements, as these factors are likely to dictate gold's short-term trajectory. The ongoing Iran-Israel-US war and its impact on market sentiment remain critical variables in this volatile landscape.
