Indian Gold Prices Plummet Amid Dollar Strength and Iran-US Tensions

Gold prices in India fell by 1.16% on a weekly basis due to higher US Treasury yields and a firmer dollar, which reduced demand for safe-haven assets.

The MCX gold August futures gained 0.06% on Friday, while the MCX silver September futures dipped 1.13%. The current price of gold futures stands at Rs 141,599, with silver futures trading at Rs 217,488 per kg.

The price of 10 grams of 24-carat gold was at Rs 142,860 on Friday, down from the opening market value of Rs 144,532 on Monday. According to an analyst, 'Silver was comparatively steady, trading within a relatively narrow range, while the broader precious metals complex maintained a cautious tone as investors awaited fresh macroeconomic catalysts and greater clarity on the Federal Reserve's policy path.'

The US-Iran conflict had a significant impact on commodity markets, with crude prices easing but investors remaining cautious due to inflation fears. The Fed's relatively hawkish stance and sticky inflation expectations driven by rising oil prices reduced expectations of near-term rate cuts and pushed the implied probability of a September rate hike to roughly 63%.