New Delhi, April 2 Gold prices plunged by Rs 6,004 to Rs 1.47 lakh per 10 grams in futures trading on Thursday, amid heightened geopolitical tensions in the Middle East that boosted the US dollar and dampened investor sentiment.Breaking a four-day winning streak, the yellow metal for June delivery plunged by Rs 6,004, or 3.91 percent, to Rs 1,47,704 per 10 grams on the Multi Commodity Exchange.
Analysts said that precious metal prices declined as the US dollar rebounded following remarks by President Donald Trump indicating a potential escalation in the ongoing conflict with Iran.
Gold prices declined on Thursday, ending a four-day gain, as the US dollar rebounded after President Donald Trump warned that the military campaign in Iran could continue with more intense action over the next two to three weeks, said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
In the international markets, Comex gold futures for the June contract also ended a four-day rally, depreciating by USD 194.70, or 4.05 percent, to USD 4,618.40 per ounce.
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In an address from the White House, President Donald Trump said that Washington's core strategic objectives in Iran were nearing completion. However, he added that the US would "hit Iran extremely hard" for the next two to three weeks.
Meanwhile, Trump offered no timeline to the end of the war on Iran and no solution to the closure of the Strait of Hormuz that has crippled global financial markets.
Jigar Trivedi said this stance by the US President had strengthened the US dollar, adding that the greenback has recently emerged as a safe-haven asset, putting pressure on dollar-denominated precious metals.
Crude oil prices also resumed their advance, reinforcing inflation concerns and expectations of tighter monetary policy.
"Traders have fully priced out the prospect of interest rate cuts in 2026 by the US Federal Reserve, a stark reversal from pre-war expectations of two cuts," Trivedi said.
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