Open account

Gold falls around 2% in one week as skyrocketing oil prices fuel inflation worries. What lies ahead?

Gold traded flat on Friday but is set for a roughly 2% weekly decline as a spike in oil to about $126/barrel renewed inflation fears and reinforced expectations of higher-for-longer interest rates. Spot gold was near $4,620/oz while US June futures were at $4,632.70 after hitting a one‑month low earlier in the week. Elevated oil and geopolitical tensions around the Iran‑US conflict are keeping markets jittery and contributing to short‑term volatility and position‑squaring in futures. Near‑term technical levels in India put support around Rs 1,48,000 and resistance near Rs 1,52,000 per 10g, with MCX June contracts around Rs 1,51,225. Longer-term views remain bullish — Deutsche Bank projects gold could reach $8,000/oz within five years if central banks increase bullion allocations — but the immediate outlook is range‑bound and volatile.

Category

Gold

Sentiment

Mixed

Event

Price movement

Reading time

1 min