Gold prices fell by ₹1,107 to ₹1.57 lakh per 10 grams in futures trading on Tuesday, driven by renewed U.S. military strikes against Iran, which heightened volatility, strengthened the U.S. dollar, and prompted profit-taking among traders.
On the Multi-Commodity Exchange (MCX), the yellow metal for June delivery rose by ₹1,107, or 0.7%, reaching ₹1,57,974 per 10 grams in a turnover of 4,725 lots. The August contract for gold also declined, slipping by ₹1,061, or 0.65%, to ₹1,61,320 per 10 grams in 4,810 lots.
Analysts noted that gold prices exhibited significant volatility as investors responded to rising tensions in West Asia and fluctuating crude oil prices. Gaurav Garg, Research Analyst at Lemonn Markets Desk, stated that while initial optimism surrounding potential U.S.-Iran peace negotiations had bolstered sentiment, renewed uncertainty led to fresh selling.
In international markets, Comex gold futures for August delivery rose slightly to $4,562.15 per ounce in New York. Market fluctuations intensified following U.S. military strikes on Iranian targets, reviving fears of an extended conflict in West Asia, according to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd. This escalation pushed crude oil prices higher after a week of declines, raising concerns about energy-driven inflation and causing markets to remain cautious.
Modi further emphasized that the rebound in oil prices supported a firm U.S. dollar, with investors considering the greenback a safer asset amid geopolitical uncertainty. U.S. President Donald Trump acknowledged ongoing diplomatic efforts with Tehran, yet warned that military action could resume should talks falter.
Renisha Chainani, Head of Research at Augmont, noted that gold has declined nearly 15% in foreign markets since the onset of the conflict, as fears of energy-driven inflation reinforced expectations of central bank tightening. However, the recent sharp decline in oil prices has partially alleviated inflation concerns and moderated rate hike expectations.
Market participants are closely awaiting the upcoming U.S. GDP and inflation data later this week for further insights into the Federal Reserve’s interest rate cycle and its implications for bullion prices.
Published on May 26, 2026.
