Gold Prices Fall to $4,684.32 per Ounce Amid Geopolitical Tensions and Inflation Fears

Gold prices dropped Monday, with spot gold falling 0.6% to $4,684.32 per ounce and US gold futures for June delivery down 0.8% to $4,692.70. The decline followed renewed Middle East tensions that pushed oil prices higher, reinforcing expectations that central banks may maintain elevated interest rates, reducing gold's appeal as a non-yielding asset.

In Delhi, 24K gold was quoted at Rs 15,228 per gram, down Rs 22, while 22K gold fell Rs 20 to Rs 13,960 per gram. The 18K variant slipped Rs 16 to Rs 11,425 per gram, reflecting weaker demand amid high rates and strong global price pressures.

Investors are closely watching US-Iran peace talks and upcoming economic data from China, Germany, the US, the Eurozone, and the UK, including inflation and GDP figures, which could influence market sentiment and demand for safe-haven assets. Silver outperformed gold, supported by industrial demand and supply constraints, while gold remained range-bound.

The Reserve Bank of India and other central banks' policy signals, along with ETF inflows and the US dollar's movement, will continue to shape precious metal trends. The next major price drivers are expected to be the US Senate vote on the Federal Reserve nominee and inflation data releases in the coming week.