Gold Prices Plummet in India Amid Escalating US-Iran Tensions

The price of gold in India's retail market declined on Monday, August 31, amid increased tensions between the US and Iran. The resumption of strikes between the two countries led to a 1.22% drop in 24-karat gold prices, which traded around ₹154,940 per 10 grams at 9:10 AM. Silver prices also fell by 1.37%, with 999 silver trading at ₹238,870 per kg.

The decline in bullion prices comes after a month-long pause in US-Iran tensions, which escalated on Sunday when the US struck Iranian rocket launchers. Iran responded by launching strikes against US bases in Jordan, injecting uncertainty into the market and prompting investors to assess the possibility of a return to diplomacy.

In the international market, gold prices remained flat on Monday, after falling more than 3% in the previous session. Spot gold held its ground at $4,455.29 per ounce by 0011 GMT, despite expectations of a US Fed rate hike.