Gold prices have sharply declined despite rising geopolitical tensions from the US–Iran war, surprising investors. A strong US dollar, rising crude oil prices, and inflation fears are outweighing gold’s traditional safe-haven appeal. Experts warn that gold prices in India could fall further to ₹1.27 lakh per 10 grams as global macroeconomic pressures intensify.
Gold, typically considered a safe-haven asset during geopolitical crises, is witnessing an unusual decline amid the ongoing 2026 Iran war. Prices that once hovered near ₹1.60 lakh per 10 grams have dropped significantly to around ₹1.44 lakh. The key reason behind this unexpected trend is the strength of the US dollar. As global uncertainty rises, investors are shifting towards the dollar instead of gold, making gold more expensive for international buyers and reducing demand. Additionally, rising crude oil prices due to geopolitical disruptions—especially around the Strait of Hormuz—have increased inflation fears globally. This has pushed central banks to maintain or even increase interest rates, making non-yielding assets like gold less attractive.
