Gold Price after rebound: Gold prices have been moving up and down a lot since the tensions grew in the Middle East conflict. The metal first went through a sharp fall. Reports show gold dropped around 13% to 15% from earlier highs during this correction phase. For most of last week, prices stayed weak and ended lower in many sessions.
Overall, gold lost about 2% over the week. Then on Friday, the mood changed fast. Gold jumped strongly and touched above $4,550 an ounce during the day before ending a bit lower. Reuters said spot gold rose as much as $4,554.39 before easing, while U.S. gold futures also closed higher.
In India too, the market stayed very active. Reports from March 28 said 24-carat gold was around Rs 1,42,942 to Rs 1,44,720 per 10 grams, while MCX gold futures were near Rs 1,44,500 per 10 grams. This shows how fast prices are changing from one session to the next. The gold market is not moving in one clean direction right now. It is reacting to every big update from war, oil, the dollar, and interest rate expectations.
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Oil, inflation and rate fears behind the pressure
One big reason for the recent weakness in gold has been the move in oil prices and the fear of sticky inflation. When geopolitical tension pushes crude oil higher, investors start worrying that inflation may stay high for longer. That can make central banks, especially the US Federal Reserve, keep interest rates higher for more time. Gold does not give regular income like interest-paying assets do, so high rates often make it less attractive. Reuters reported earlier in the week that gold came under pressure as Middle East tension added to inflation worries and made hopes of lower rates fade.
Another thing adding to the nervousness is what central banks may do next. The Wall Street Journal reported that analysts at ING warned gold could face pressure if some central banks start selling reserves, especially countries under energy stress that may need support for their currencies.
Market talk has also focused on reserve sales by Turkey’s central bank, which added more uncertainty to the gold story. So even though gold is usually seen as a safe place in times of fear, it is also facing pressure from other big money forces right now.
Can gold recover from here?
Even after the latest rebound, experts are still being careful with their outlook. According to Ponmudi R, CEO of Enrich Money, the market is now trying to settle down after a strong correction in precious metals.
He said, “Overall, sentiment remains cautiously balanced, with markets transitioning from a corrective phase toward gradual recovery. A selective buy-on-dips approach near key support zones remains preferable, as the broader macro backdrop stays supportive, although near-term momentum is likely to remain influenced by currency movements and geopolitical developments,” Ponmudi said in a Mint report. Mint also said the recent fall cooled down an overheated market, but gold is still trying to build strength again while mixed signals remain.
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Experts say the next move in gold will depend on a few big things. These include where interest rates go, whether oil prices stay high or cool down, how the US dollar behaves, and whether tensions in the Middle East get worse or start easing. Saurabh Jain, Co-founder & CEO, Stable Money, said, “Gold and silver prices today continue to reflect a mix of global cues such as evolving interest rate expectations, currency movements, and ongoing geopolitical uncertainties. These factors typically shape investor interest in precious metals, especially during periods of volatility,” said Saurabh Jain, Co-founder & CEO, Stable Money.
