Key Highlights:

  • Weekly Decline: Gold prices fell nearly 3% on a weekly basis due to repricing of US monetary policy expectations and rising crude oil-driven inflation concerns.
  • Price Snapshot: 10 grams of 24-carat gold stood at Rs 1,54,884 on Friday, down from Rs 1,59,578 the previous Friday, according to IBJA data.
  • A Volatile Week: Precious metals touched a three-month high, saw a midweek rebound after a sharp selloff, and ended with a final pullback on Friday.
  • Jobs Data Reverses Sentiment: A stronger-than-expected August US jobs report reversed much of the Fed's earlier dovish shift in a single session.
  • Key Levels to Watch: Comex Gold faces resistance at $4,500–$4,530 with support at $4,330–$4,360; MCX gold resistance is at Rs 1,56,500–Rs 1,57,000 with support at Rs 1,51,500–Rs 1,52,000.

Gold prices dipped nearly 3 per cent on a weekly basis due to repricing of US monetary policy expectations and a surge in crude oil prices that raised inflation concerns.

On Friday, MCX gold futures (October) inched up 0.03 per cent while MCX silver futures (September) shed 0.07 per cent. The yellow metal stood at Rs 1,52,815, while the white metal stood at Rs 2,37,500. The price of 10 grams of 24-carat gold was at Rs 1,54,884 on Friday, down from Rs 1,59,578 a week earlier, according to data published by the India Bullion and Jewellers Association (IBJA).

Precious metals touched a three-month high, saw a midweek rebound after a sharp selloff, and pulled back again on Friday as markets reacted to a mix of geopolitical tensions, shifting Federal Reserve expectations, and stronger-than-expected US labour data. A market participant said a blockbuster August jobs report on Friday reversed much of the dovish shift from the US Federal Reserve in a single session.

The geopolitical backdrop driving oil, and in turn gold: The crude-oil rally referenced here is tied to an active military conflict that has been unfolding since February 28, 2026, when US and Israeli strikes on Iranian targets triggered what is now widely referred to as the 2026 Iran war and the associated Strait of Hormuz crisis. Iran responded by threatening and periodically disrupting shipping through the Strait — a chokepoint that carries a substantial share of the world's seaborne oil — leading to a US naval blockade and repeated exchanges of strikes between the two sides in the months since. The latest escalation saw the US strike Iranian rocket launchers near the Strait, followed by Iranian retaliatory strikes on Kuwait and other Gulf states, which is what pushed crude prices higher this week and fed into the inflation concerns cited in gold's price action.

Bullion initially found support from this geopolitical uncertainty and weakness in the US dollar. However, the escalation adversely affected gold as heightened inflation concerns from the crude rally pushed expectations of a September Federal Reserve rate hike sharply higher. Rising Treasury yields and a stronger dollar then outweighed safe-haven demand, triggering a sharp correction in precious metals.

Market mood shifted again mid-week after weaker-than-expected US labour-market data and dovish Fed commentary revived hopes of a less aggressive monetary policy stance. That rebound proved short-lived once Friday's August US employment report came in, pushing Treasury yields and the dollar sharply higher again and reversing much of the earlier dovish sentiment, analysts said.

Immediate resistance for Comex Gold is placed at the $4,500–$4,530 zone, with support at $4,330–$4,360. For MCX gold, resistance lies at Rs 1,56,500–Rs 1,57,000, with support at Rs 1,51,500–Rs 1,52,000, analysts added.

Also Read: Gold posts 1.31 pc weekly surge as US-Iran conflict escalates