Gold Futures Drop Nearly 2% To ₹1.52 Lakh/10g on Strong Dollar

Gold prices dropped more than 1 per cent to Rs 1.52 lakh per 10 grams in the futures trade on Tuesday, due to easing safe-haven demand amid improving geopolitical sentiment and a strong US dollar.

On the Multi Commodity Exchange, the yellow metal for April delivery depreciated by Rs 2,228, or 1.44 per cent, to Rs 1,52,532 per 10 grams in a business turnover of 7,553 lots.

Gold traded on a softer note on Tuesday, with prices consolidating after recent volatility as investors booked profits and reacted to a firmer US dollar and shifting interest-rate expectations from the Federal Reserve," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.

He noted that safe-haven demand amid weakness in global equities and continued central-bank buying helped limit the downside.

In 2026, both metals are undergoing a volatile corrective phase after last year's strong rally, though the broader multi-year bullish trend remains intact. MCX gold is consolidating around Rs 1.55-1.58 lakh per 10 grams, below earlier peaks, Garg said.

"The current weakness is largely seen as consolidation rather than a trend reversal. Investors may consider holding and rebalancing on dips, while fresh allocations should be staggered amid choppy market conditions," he added.

In the global market, Comex gold futures for April contract declined USD 119.6, or 2.37 per cent, to USD 4,926.7 per ounce.

"Gold dropped below USD 4,970 per ounce amid thin trading volumes as several Asian markets including China, remained closed for the Lunar New Year following a US market holiday on Monday," Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.

Renisha Chainani, Head - Research at Augmont, said safe-haven demand for gold metal eased as geopolitical tensions moderated and the US dollar strengthened.

She noted that comments from President Donald Trump indicating indirect US involvement in upcoming nuclear discussions with Iran in Geneva, raised hopes of diplomatic progress. At the same time, fresh Ukraine-Russia talks reduced immediate geopolitical tensions, improving risk appetite.

"As risk sentiment improved, some investors reduced defensive positions in precious metals," Chainani said, adding that market attention now shifts to the Federal Reserve's January meeting minutes for cues on the future interest rate outlook.