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Gold Slumps to ₹143,510 in Delhi as Iran Tensions Escalate
Gold in India tumbled 3% to ₹143,510/10g in Delhi as US-Iran tensions flared. Silver dropped 6.2%. The World Gold Council flagged a possible rally to $4,500/oz.
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Gold prices in India dropped sharply this week, with 24-karat rates falling to ₹143,510 per 10 grams in Delhi, down 3% from ₹147,850 a week earlier, according to Mint data.
The sell-off followed renewed US military strikes against Iran. Washington launched a third round of attacks this week after Iran fired warning shots at a vessel transiting the Strait of Hormuz, the report said. The escalation pushed up expectations that the Federal Reserve would keep interest rates elevated. Higher rates are a headwind for gold, which pays no interest, because they boost the dollar and the opportunity cost of holding the metal.
Profit-taking also hit the market. Gold has dropped more than a fifth since the West Asia war started in late February, ending a three-year bull run that had pushed prices to record highs.