Argus News - Gold Prices Crash in India Amid Trump’s Iran Threat

Mumbai, Apr 6: Gold prices in India witnessed a sharp decline on April 6, with rates across 24K, 22K, and 18K categories tumbling amid heightened geopolitical tensions and a stronger US dollar. The drop comes in the wake of US President Donald Trump’s renewed threats against Iran over the Strait of Hormuz, which rattled global markets and pushed crude oil prices higher. Investors, already grappling with inflationary pressures, reacted swiftly, leading to a significant correction in bullion.

For 24K gold, the price of 10 grams fell by ₹1,800 to ₹1,49,130, while 100 grams dropped by ₹18,000 to ₹14,91,300. Similarly, 22K gold saw a decline of ₹1,650 for 10 grams, settling at ₹1,36,700, and 18K gold slipped by ₹1,350 for 10 grams to ₹1,11,850. The fall was consistent across smaller denominations, with 1 gram prices also registering notable declines. The correction highlights the sensitivity of gold to global currency and commodity movements, particularly when the US dollar index surged past 100.2, dampening bullion’s appeal.

On the Multi Commodity Exchange (MCX), gold traded volatile between ₹1.48 lakh and ₹1.50 lakh per 10 grams, with the latest price at ₹1,49,684. Silver too faced pressure, slipping marginally by ₹298 to ₹2,32,197 per kilogram, fluctuating within the ₹2.29 lakh - ₹2.33 lakh range. Analysts suggest that while gold retains its safe-haven status, the market is struggling to sustain rallies, reflecting fading strength at higher levels. Resistance for gold is pegged at ₹1,50,000, with potential upside toward ₹1,52,000 - ₹1,55,000 if momentum revives. Conversely, a break below ₹1,47,000 could drag prices further down to ₹1,45,000 or even ₹1,40,000.

Silver’s outlook remains equally cautious, with resistance at ₹2,33,000 - ₹2,34,000. A breakout could lift prices toward ₹2,37,000–₹2,40,000, but weakness below ₹2,30,000 may accelerate selling toward ₹2,25,000 or lower. Market experts emphasize that macroeconomic uncertainty, coupled with geopolitical risks, will continue to dictate the near-term trajectory of precious metals. For Indian investors, the current dip offers both challenges and opportunities, as gold’s long-term demand remains resilient despite short-term volatility.