Gold Prices Tumble Amid US-Iran Tensions

Gold prices fell by Rs 6,004 to Rs 1.47 lakh per 10 grams in futures trade due to rising geopolitical tensions in West Asia. The US dollar's rebound, driven by President Trump's aggressive stance towards Iran, led to diminished investor sentiment, ending gold's four-day rally.

On Thursday, gold prices took a significant hit, dropping by Rs 6,004 to settle at Rs 1.47 lakh per 10 grams in futures trade. This decline followed intensified geopolitical tensions in West Asia, which bolstered the US dollar and deflated investor sentiment.

The downward trend ended a four-day winning streak for the yellow metal, with analysts attributing the drop to the US dollar's resurgence influenced by President Donald Trump's remarks. Trump indicated potential escalations in the US-Iran conflict, contributing to the dollar's appeal as a safe-haven asset.

In international markets, Comex gold futures for the June contract also saw a 4.05% drop. The firm US stance on Iran, coupled with rising crude oil prices, has sparked inflation concerns and expectations of tighter monetary policy, according to Jigar Trivedi of IndusInd Securities.

(With inputs from agencies.)