In the ongoing West Asia conflict—now including heightened Iran-US tensions—gold prices were nearly flat on Friday but headed for a 2% weekly loss. Surging oil prices continue to drive inflation fears and expectations of prolonged high interest rates, tempering safe-haven demand.
Building on earlier declines since the West Asia war erupted late February, gold futures showed minimal movement but are tracking a roughly 2% weekly drop. Skyrocketing crude oil has intensified inflation concerns, prompting traders to bet on sustained elevated interest rates, which weigh on non-yielding gold. Reports from The Economic Times highlight impacts on MCX gold futures and central bank reserves amid persistent market volatility.
Gold's safe-haven status remains challenged by these dynamics, despite geopolitical risks from the Iran-US conflict. Analysts from LKP Securities and others foresee near-term volatility but long-term upside from central bank purchases and global uncertainties. No immediate price targets were specified.