Gold Falls 0.5% in India as US-Iran Conflict Drives Safe-Haven Demand

Gold futures in India dropped 0.5% on Monday morning. The decline followed a two-day weekend trading pause. This movement reflects continued volatility in the domestic market.

MCX Gold 5 October contracts traded at ₹153,870 per 10 grams. Silver 4 December contracts fell 0.39% to ₹240,663 per kg. These levels were recorded at 9:05 am local time.

Geopolitical tensions sustain precious metal demand

A United Nations fact-finding mission reported credible evidence of US strikes on Iranian facilities. Reuters noted the mission described these actions as potential war crimes. The report urges both nations to cease violations immediately.

US Ambassador Mike Waltz stated there is no timeline for ending the conflict. He claimed time favors the United States as the war nears seven months. This uncertainty continues to fuel safe-haven buying activity globally.

City-wise retail rates show regional variations

Retail prices vary across major Indian cities according to Livemint data. 24-karat gold in Mumbai costs ₹154,250 per 10 grams. New Delhi prices sit lower at ₹153,960 for the same purity.

Chennai recorded the highest 24-karat rate at ₹154,670 per 10 grams. Hyderabad followed closely with ₹154,470. Silver 999 Fine rates range from ₹239,970 in Delhi to ₹241,090 in Chennai.

Long-term price trends show significant historical gains

Gold prices rose over 75% last year in their strongest run since 1979. Silver prices climbed from ₹78,600 per kg in 2023 to over ₹240,000. This surge reflects strong industrial demand and currency fluctuations.

Jewellers add making charges and GST to these base rates. The final consumer price will therefore exceed the quoted metal value. Buyers should account for these additional costs in their calculations.