Gold is currently trading at around $3,375 (approximately ₹97,000), driven by investor concerns over the escalating Middle East crisis following the US’s involvement in Israeli attacks on Iran. Over the weekend, US forces struck three of Iran’s major nuclear sites, and President Donald Trump warned of further action if Iran fails to come to the negotiating table. This intensifying conflict between Israel and Iran has renewed momentum in gold’s rally, pushing prices up nearly 30% this year.
On Monday, gold prices slipped by nearly 1%, starting the week on a weak note. Despite the missile exchanges between Iran and Israel over the weekend, typical safe-haven buying wasn’t enough to steer market activity. As global markets reacted negatively to the growing conflict, investors also offloaded precious metals to cover losses in other sectors.
Meanwhile, the US Federal Reserve opted to keep interest rates steady last week, adopting a cautious, data-driven approach. The Fed warned that President Trump’s new tariffs could increase inflation and complicate the economic outlook. Trump, however, reiterated his call for a 2.5 percentage point cut in interest rates.
Amid the conflict, Israel reportedly struck about 20 sites in and around Tehran, targeting facilities linked to Iran’s nuclear weapons program. Adding to market pressures, Argentina announced the discovery of one of the largest copper, gold, and silver reserves in 30 years, containing an estimated 13.2 million tons of copper and over 80 million ounces of gold and silver—further affecting supply-side sentiment.
After a symmetrical triangle breakout last week, gold is now consolidating at elevated levels. Analysts expect bullish momentum to persist as long as prices stay above $3,300 (~₹96,300). For the week, gold is expected to trade between $3,320 (~₹97,000) and $3,420 (~₹100,000), with a breakout or breakdown likely leading to a 2–3% price movement in either direction.
Silver, on the other hand, has broken past its resistance zone—surpassing $35 (~₹102,000) to hit an all-time high of $37 (~₹107,000). If this upward trend continues, the next target is $38 (~₹111,000). Key support is currently at $35.5 (~₹104,000).
Looking ahead, several Federal Reserve officials are scheduled to appear before Congress this week. Fed Chair Jerome Powell is expected to testify over two days, addressing the potential economic impact of President Trump’s tariffs and the ongoing Iran conflict.