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In India, gold traded at ₹1,00,480 per 10 grams for 24 karat purity and ₹92,100 for 22 karat, according to Goodreturns.
By Anshul June 20, 2025, 11:45:44 AM IST (Published)
Gold prices dropped on Friday (June 20) and were on track for their first weekly decline in three weeks. This development came as stronger dollar and reduced expectations of US interest rate cuts outweighed safe-haven demand from escalating geopolitical tensions.
Spot gold fell 0.5% to $3,355.49 an ounce, down 2.2% for the week.
US gold futures declined 1% to $3,371.80 an ounce.
In India, gold traded at ₹1,00,480 per 10 grams for 24 karat purity and ₹92,100 for 22 karat, according to Goodreturns.
“Right now there's a lot of fluid situation in the Middle East that causes traders not to take any aggressive position,” said Kelvin Wong, Senior Market Analyst, Asia Pacific at OANDA.
Tensions surged after Israel bombed Iranian nuclear sites and Tehran responded with missile and drone strikes, including an attack on an Israeli hospital. The US is weighing involvement, according to the White House.
Despite these risks, bullion prices failed to gain traction.
Analysts at ANZ pointed to "steady yields and renewed USD strength" as key reasons. A stronger dollar typically makes gold more expensive for holders of other currencies.
Rahul Kalantri, VP Commodities at Mehta Equities, said gold slid near one-week lows as investors booked profits amid geopolitical uncertainty.
“The escalation in the Israel-Iran war and a weaker dollar index are supporting safe-haven buying, but the recent slide reflects profit-booking and shifting positions,” he said.
He noted gold has technical support at $3,340–3,315 an ounce and resistance at $3,380–3,400 an ounce. In Indian rupees, support lies at ₹98,750–98,550 per 10 grams and resistance at ₹99,550–99,740 per 10 grams
Aksha Kamboj, Vice President of India Bullion and Jewellers Association, said inflation concerns signalled by the Fed have weighed on gold's appeal.
“After a strong rally earlier in 2025, any further gains in bullion are likely to depend on a significant escalation in the West Asia conflict,” she said.
According to Satish Dondapati, VP and Fund Manager at Kotak AMC, gold has consolidated after reaching record highs in June 2025.
“The Fed’s cautious stance on rates has dented gold’s shine, but geopolitical risks and central bank demand may continue to lend support,” he said.
-With Reuters inputs
