Why Gold Prices Slipped Today Amid Middle East Crisis?

After benchmark indices declined last week into correction phase, and investors pivoted towards gold, the yellow metal prices slipped on Monday, March 16 over volatility in oil prices setting expectations of a hawkish policy stance by central banks, including the US Federal Reserve.

Brokerage house Motilal Oswal noted, "For now, geopolitical tensions & currency volatility support prices. But once these ease, gold could correct, with the very tailwind driving this boom."

The prices of 24 karat gold per 10 grams declined by Rs 2,240 from Rs 1,59,660 to Rs 1,57,420. On the other hand, the prices of 22 karat gold per 10 grams fell by Rs 2,050 to Rs 1,46,350 from Rs 1,44,300.

On the Multi Commodity Exchange (MCX), gold futures for April delivery dropped Rs 2,225, or 1.4% to Rs 1,56,241 per 10 grams.

Also Read: India Inspects Legal Impact Of US Investigation Under Section 301

Key Triggers Behind Gold's Slip Today 

• The yellow metal is currently caught between the typical safe-haven demand dynamics and the dollar’s strength due to surging oil prices.
• The volatility in oil prices rose after the United States attacked Iran's Kharg Island, a crucial oil export hub over the weekend, increasing concerns over further global supply chain concerns.
• The rupee also opened in negative, plummeting 13 paise to 92.43 against the US dollar in early trade.

This comes after gold rallied strongly during the week as investors shifted toward safe-haven assets, equity markets faced heavy volatility, while commodity-linked sectors and precious metals benefited from the global uncertainty and geopolitical risks.

Gold Prices in Mumbai Today (Per 1 Gram)

• 24 Karat - 15,742
• 22 Karat- 14,430
• 18 Karat- 11,807

Gold Prices in Delhi Today (Per 1 Gram)

• 24 Karat - 15,930 
• 22 Karat- 14,605 
• 18 Karat- 11,953 

Gold Prices in Chennai Today (Per 1 Gram)

• 24 Karat - 16,048 
• 22 Karat- 14,710 
• 18 Karat- 12,400

Gold Prices in Bengaluru Today (Per 1 Gram)

• 24 Karat - 15,742 
• 22 Karat- 14,430 
• 18 Karat- 11,807