Gold prices plunged by ₹3,616 to ₹1.49 lakh per 10 grams in futures trade on Thursday, tracking weak global trends and a firm US dollar.
On the Multi Commodity Exchange, the yellow metal for the April delivery depreciated by ₹3,616, or 2.36%, to ₹1,49,409 per 10 grams in a business turnover of 7,387 lots.
Analysts said precious metal prices came under intense pressure as a stronger dollar and US Treasury bond yields reduced the appeal of the safe-haven asset.
2 March 2026
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In the international market, gold futures for the April contract on the Comex dipped by $120.84, or 2.47%, to $4,775.36 per ounce in New York.
Gold prices slipped below the $4,800 per ounce level as stronger US producer inflation and a firm dollar outweigh safe-haven demand from West Asia tensions, Renisha Chainani, Head of Research at Augmont, said.
She added that elevated US Treasury bond yields continued to cap gains in the precious metal, keeping overall sentiment weak despite geopolitical tensions in West Asia.
On Wednesday, the US Federal Reserve, in its latest policy decision, held interest rates steady, but highlighted inflation risks from the conflict in West Asia and signalled a cautious stance.
However, the central bank continues to project one rate cut this year, indicating that any policy easing will depend on clear signs of inflation cooling, making bullion prices sensitive to incoming macroeconomic data.
Meanwhile, the Bank of Japan kept its key short-term interest rate unchanged at its March 2026 policy meeting, leaving borrowing costs at their highest level since September 1995.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said policymakers maintained their view that the economy is recovering moderately, though they flagged rising uncertainty as the escalating conflict in West Asia continues to cloud the outlook.
