Gold prices fell in the domestic futures market on June 17 after hitting record highs in the previous session. The decline comes as investors booked profits while closely watching the growing conflict between Israel and Iran and awaiting the US Federal Reserve’s policy decision scheduled for June 18.
With political tensions escalating and markets bracing for the Fed’s stance on inflation and interest rates, uncertainty continues to weigh on gold prices.
Geopolitical Tensions Impact Gold Prices
On MCX, the August gold futures contract dropped 0.24% to ₹98,940 per 10 grams. This came after it had touched a record high of ₹1,01,078 per 10 grams in the previous session, ending that day with a 1% decline. The rising conflict between Israel and Iran continues to drive investor caution. US President Donald Trump cut short his G7 summit visit, demanding the immediate evacuation of Tehran.
Meanwhile, China warned that if the conflict spreads, the entire Middle East could suffer. “If the conflict between Israel and Iran continues to escalate or even spill over, the other countries in the Middle East will inevitably bear the brunt,” said Chinese Foreign Ministry spokesman Guo Jiakun.
Gold Prices Dip Across India Amid Conflict
On June 17, gold prices dropped to ₹99,960 per 10 grams, down from the previous day’s record high of ₹1,00,480, according to the Indian Bullion Association. This decline came amid rising tensions between Israel and Iran. Similar price drops were seen across major cities.
In New Delhi, gold fell to ₹99,610 per 10 grams from ₹1,00,130. Mumbai prices slipped to ₹99,780 from ₹1,00,300. In Kolkata, gold was priced at ₹99,650, while Bengaluru saw rates at ₹99,860. Chennai recorded the highest price at ₹1,00,070 per 10 grams.
US Federal Reserve Policy Decision
Aside from changes in geopolitics, investors are also keeping a careful eye on the US Federal Reserve’s imminent decision on monetary policy. The US Federal Reserve is the country’s central bank. The Fed is anticipated to maintain stable interest rates, although market sentiment may be affected by Jerome Powell’s comments about the economy and inflation.
Experts believe gold’s long-term outlook remains strong but advise caution at current price levels.”The advice is: booking partial profits if you are overweight or need cash,” said Renisha Chainani, the head of research at Augmont. For those underinvested, she recommends buying on dips through SIPs or digital gold.
Technical analysts provided key levels to watch. Rahul Kalantri from Mehta Equities pegged gold support at $3,380-$3,355 and resistance at $3,425-$3,442 per troy ounce. In rupee terms, gold support stands at ₹98,620-₹98,390, with resistance at ₹99,750-₹1,00,240.
Manoj Kumar Jain from Prithvifinmart Commodity Research sees MCX gold support at ₹98,550-₹97,700 and resistance at ₹99,800-₹1,00,400. For silver, he suggested buying on dips near ₹1,05,800 with a stop loss at ₹1,04,750 and a target of ₹1,07,000-₹1,07,700.