Overview
- Spot prices extended losses on Monday to a four‑month low after more than a 10% weekly drop, marking a ninth straight session in the red and the steepest weekly fall in about 43 years.
- Traders shifted from anticipating rate cuts to pricing possible hikes as the US–Iran conflict and threats around the Strait of Hormuz kept crude above $100–$110, lifting inflation worries.
- A stronger US dollar and higher Treasury yields weighed on gold, with analysts noting that elevated real rates reduce demand for the non‑interest‑bearing metal.
- Liquidity stresses led to forced unwinding and profit‑taking, with market participants selling gold to cover losses elsewhere as risk‑off flows deepened across assets.
- Shockwaves hit local markets too: Indian MCX gold futures sank by Rs 8,089 to roughly Rs 1.36 lakh per 10 grams, Dubai’s 24K retail rate fell about Dh103 per gram since early March, and silver, platinum and palladium all dropped sharply.