Gold Price Dips Below ₹1 Lakh Mark Amid Profit Booking and Geopolitical Tensions

GG News Bureau
Mumbai, 17th June: The price of gold slipped below the ₹1 lakh mark today, even as continued attacks between Iran and Israel kept the Middle East on edge. Analysts attribute this weakness in gold prices primarily to profit booking, suggesting that the current geopolitical risk has already been factored into the yellow metal’s price.

Aksha Kamboj, Vice President of the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures, commented, “Gold prices are experiencing some profit booking after recent gains, even as tensions in West Asia persist without signs of de-escalation. It appears that the current geopolitical risk is already priced in, and only a significant escalation may drive bullion prices higher from here. That said, developments in the region remain a key factor to watch in the near term.” Kamboj also highlighted the upcoming Federal Reserve’s meeting on Wednesday night as another important influence on gold’s direction, though the consensus expects rates to remain unchanged.

Amidst the ongoing geopolitical conflict in the Middle East, gold fell by ₹487 to ₹99,789 against its previous close of ₹100,276 on the Multi Commodity Exchange (MCX). Despite this correction, gold remains a preferred asset for investors seeking stability amidst global uncertainties, underscoring its importance as a hedge against geopolitical risks and its pivotal role in providing security during times of instability.

Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, noted, “Profit booking was witnessed following reports of multiple potential trade deals between India-US, India-China, and US-Euro zones.” He explained that this moderation in safe-haven demand led to a mild correction in Comex gold as well. Looking ahead, Trivedi stated that market participants will remain focused on three key triggers: the upcoming US interest rate decision, escalating tensions between Iran and Israel, and progress on global trade negotiations. These factors are expected to keep gold prices highly volatile. Trivedi anticipates Comex Gold to trade within a range of $3,290 to $3,450, while MCX Gold could fluctuate between ₹97,000 to ₹1,02,000 in the near term.