Gold prices are on track for a weekly decline as rising crude oil prices and geopolitical tensions in the Middle East continue to weigh on investor sentiment. The yellow metal has hit its lowest levels in the past week, with the US-Iran impasse and the closure of the Strait of Hormuz keeping crude oil prices elevated. Brent crude traded above $100 per barrel on Thursday, exacerbating the downward pressure on gold and silver, which have crashed from their lifetime highs after a record rally over the last year.
Gold Rate Today: Gold Expected to Stay Under Pressure
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, gold traded weak on Thursday, declining around ₹1,150 to ₹151,500. Macro pressures continued to outweigh safe-haven demand, with rising crude prices pushing inflation higher and reinforcing expectations of prolonged high interest rates. This reduces the appeal of non-yielding assets like gold. Uncertainty around US-Iran talks is keeping volatility elevated, but without clear escalation, gold is witnessing profit booking rather than fresh buying. Technically, support is seen near ₹148,000, while ₹155,000 remains a strong resistance zone. Overall, gold is expected to stay under pressure with a volatile bias, reacting to crude, dollar, and geopolitical developments.
Markets Remain on Edge
Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities, noted that gold prices extended their decline as a stronger US dollar and rising oil prices weighed on sentiment. Markets remain on edge due to limited progress in US-Iran negotiations and escalating tensions around the Strait of Hormuz. Adding to the downside, Treasury bond yields also edged higher, with the 10-year yield rising by around 3 basis points to 4.32%, further reducing the appeal of safe-haven assets such as gold.
Silver Rate Today: Silver Dropped 2.7% on Thursday
Spot silver dropped 2.7% to $75.55 an ounce on Thursday. Platinum declined 3.2% to $2,008.22 an ounce, while palladium tumbled 5% to $1,465.23 an ounce. Both silver and platinum had earlier touched their lowest levels in more than a week.
Momentum in Precious Metals Fades
Independent metals trader Tai Wong said that fears surrounding the fragile geopolitical situation have rattled broader financial markets. The US and Iran are engaged in a dangerous standoff, raising concerns that the ceasefire could collapse at any moment. That possibility has driven crude oil sharply higher, putting pressure on a range of assets, including gold. Wong added that gold's surge to nearly $4,900 last Friday now appears increasingly distant, as momentum in the precious metals rally has faded.
International Gold Down on Thursday
Gold prices dropped to their lowest level in more than a week on Thursday, as investors grew increasingly concerned that inflationary pressures stemming from the Middle East conflict could force interest rates to remain elevated for longer. Spot gold declined 0.9% to $4,697.06 an ounce by 3:05 p.m. EDT (1905 GMT). Earlier in the session, the precious metal had fallen more than 1%, touching an intraday low of $4,663.69 an ounce, its weakest level since April 13.
Rising energy prices typically stoke inflation, increasing the likelihood that central banks will keep borrowing costs elevated. Although gold is traditionally viewed as a hedge against inflation, higher interest rates tend to reduce the appeal of non-yielding assets such as bullion. A recent Reuters survey of economists indicated that the Federal Reserve is likely to wait at least six months before implementing any interest rate cuts this year.
Gold has also faced additional headwinds from a firmer US dollar, which made dollar-denominated bullion more expensive for holders of other currencies. At the same time, yields on benchmark 10-year US Treasury notes climbed to their highest level in over a week, further increasing the opportunity cost of holding gold.
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