India-Pakistan Tensions Drag Gold Prices Lower — Check Today’s Rates

In a surprising turn of market sentiment, escalating tensions between India and Pakistan have led to a dip in gold prices, even as geopolitical instability typically drives investors toward the safe-haven asset.

On Friday, spot gold in India fell by 0.8%, trading near Rs 71,900 per 10 grams. On the Multi Commodity Exchange (MCX), gold futures for June delivery dropped by 0.65% to Rs 71,670 per 10 grams, following a brief intraday rebound earlier in the week.

In the global market, COMEX gold futures slipped to $2,318 per ounce, amid a mix of technical selling pressure and shifts in investor strategy as tensions between the nuclear-armed neighbors intensified.

Also Read: Gold Hits Two-Week High As Demand Rises: Check Latest Prices In Mumbai, Delhi, Bengaluru | Republic World

The decline comes at a time when heightened conflict rhetoric and military build-up along the India-Pakistan border have rattled regional confidence. Yet, rather than rallying, gold has pulled back—largely due to fears that the standoff could disrupt consumer demand, particularly in India, which accounts for a significant share of global bullion purchases.

Investors are also keeping a close watch on currency movements and interest rate expectations, both of which are influencing short-term gold trends. The Indian rupee saw modest weakening against the US. dollar this week, adding further pressure on import-heavy commodities like gold.

The drop in prices, however, is being seen by some traders as a tactical buying window. If the geopolitical standoff escalates or global inflation concerns resurface, demand for gold could bounce back quickly.

Before India had struck Pakistan, the prices of the yellow-metal rose to a two-week high on as concerns over US President Donald Trump's tariff plans amped-up interest in gold, while investors eagerly waited for the Federal Reserve Policy meeting on Wednesday. On Tuesday, spot gold increased 0.9% to $3,362.69 per ounce at 0632 GMT, after hitting its highest since April 22 earlier in the session.