Gold Futures Drop ₹2,260 to ₹1.37 Lakh Per 10g Amid Geopolitical Uncertainty in West Asia

Gold prices declined ₹2,260 to ₹1.37 lakh per 10 grams in futures trade on Tuesday, marking their decline for the fifth straight session amid uncertainty over geopolitical developments in West Asia.

On the Multi Commodity Exchange (MCX), the yellow metal for April delivery decreased by ₹2,260, or 1.62%, to ₹1,37,000 per 10 grams.

Analysts said the precious metal prices remained under pressure due to conflicting statements surrounding tensions in West Asia.

On Monday, gold had plunged ₹14,897, or 10.3%, to hit an intraday low of ₹1,29,595 per 10 grams before recovering partially to close at ₹1,39,260 per 10 grams on the MCX.

In the international market, gold futures for the April contract slipped $62.4, or 1.42%, to $4,344.9 per ounce.

Gold futures fell toward the $4,300 per ounce, staying under pressure amid heightened tensions in West Asia as Iran denied holding talks with Washington to end the conflict, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

In the previous session, the yellow metal had staged a sharp intraday rebound after US President Donald Trump postponed planned military strikes on Iranian energy infrastructure and claimed negotiations were underway.

However, Tehran dismissed Trump's announcement as an attempt to influence financial markets and launched new attacks on US targets, while Israel continued strikes against Iran.

According to analysts, the conflicting narratives have clouded the outlook for the Strait of Hormuz and kept inflation risks elevated, as supply disruptions in global energy markets remain a concern.

Trivedi said gold had dropped as much as 25% from its March peak as rising energy prices fuelled inflation concerns and bolstered expectations of interest rate hikes by central banks.

On the outlook, he added that MCX gold futures may drop as prices are trading with the negative undertone in world markets.

According to Kotak Securities, investors are awaiting the upcoming macroeconomic data, including the US ADP employment and PMI figures, for further direction on the interest rate cuts by the Federal Reserve.