Gold prices extend losses for fifth session amid West Asia uncertainty

Gold prices continued their downward trend on Tuesday, declining for a fifth consecutive session as uncertainty over geopolitical developments in West Asia kept investor sentiment fragile.

On the Multi Commodity Exchange (MCX), gold futures for April delivery fell by Rs 2,260, or 1.62 per cent, to Rs 1.37 lakh per 10 grams.

The decline follows sharp volatility in the previous session, when prices had plunged more than 10 per cent intraday before recovering partially by the close. Analysts attributed the continued pressure on bullion to mixed signals surrounding tensions in the region.

In international markets, gold futures also weakened, slipping by over 1 per cent to trade near $4,345 per ounce, with prices hovering close to the $4,300 level.

Market participants said conflicting statements regarding potential negotiations between the United States and Iran have clouded the outlook. While Donald Trump indicated that talks were under way and delayed planned strikes on Iranian energy infrastructure, Tehran rejected the claims and continued its military actions, adding to uncertainty.

Analysts noted that the evolving situation has heightened concerns over the security of the Strait of Hormuz, a critical route for global oil supplies, thereby fuelling inflationary worries.

According to market experts, rising energy prices have strengthened expectations of tighter monetary policy by central banks, which tends to weigh on non-yielding assets such as gold.

One analyst observed that gold prices have fallen sharply from their recent highs in March, reflecting shifting market expectations and increased volatility linked to geopolitical risks and inflation concerns.

Looking ahead, experts expect bullion prices to remain under pressure in the near term, tracking global trends and macroeconomic signals.

Investors are also closely watching upcoming economic data from the United States, including employment and purchasing managers’ index (PMI) readings, for further clarity on the interest rate trajectory of the Federal Reserve.

With uncertainty persisting on both geopolitical and economic fronts, analysts said gold markets are likely to remain volatile in the coming sessions.

With PTI inputs