In the international market, spot gold was flat at $3,388.04 an ounce by 0341 GMT.
US gold futures hovered around $3,406.50 per ounce.
Back home, gold extended losses for the second straight day due to profit booking. In Mumbai, 22-carat gold was priced at ₹92,500 per 10 grams, while 24-carat gold traded at ₹1,00,910 per 10 grams, according to data from Goodreturns.
“Gold prices remain volatile as markets await clearer signals on what action the U.S. may take amid rising tensions between Iran and Israel,” said Aksha Kamboj, Vice President, India Bullion and Jewellers Association. “The Federal Reserve’s commentary on future rate cuts could also impact bullion trends.”
The market is closely watching the Fed’s policy statement and its updated projections. While no rate change is expected, any hint of future rate cuts in 2025 could push gold higher.
Recent US data showed a sharper-than-expected decline in retail sales, adding to speculation that the US Fed may ease monetary policy in the months ahead.
Weakness in housing and industrial output has further supported this view.
“Gold fluctuated as investors tracked the escalation of risk in the Middle East,” analysts at ANZ noted. “Tepid US data strengthens the case for rate cuts later this year.”
The geopolitical situation also continues to weigh on market sentiment. Iran and Israel exchanged fresh missile attacks on Wednesday, marking the sixth day of direct conflict. The U.S. is reportedly increasing its military presence in the region, raising concerns over a wider escalation.
Rahul Kalantri, VP Commodities at Mehta Equities, said the rupee’s weakness is supporting domestic bullion prices. He noted that gold has near-term support at ₹98,920-₹98,590 per 10 grams and resistance at ₹99,950-₹1 lakh per 10 grams.
Meanwhile, SPDR Gold Trust, the world’s largest gold ETF, reported a 0.43% increase in holdings on Tuesday (June 17), signalling steady institutional demand.
Looking ahead, Goldman Sachs forecasts that central bank purchases and ETF inflows could drive gold prices to $3,700 per ounce by end-2025 and $4,000 by mid-2026.
–With Reuters inputs
