Sat Jun 28 07:10:00 UTC 2025: ## Gold Prices Plunge Over 5% From Record High on Easing Geopolitical Tensions and Market Optimism
**Mumbai, India -** Gold prices have experienced a significant decline, falling over 5% (Rs 5,448 per 10 grams) from their all-time high on the Multi Commodity Exchange (MCX). On Friday, the price of gold slipped to Rs 95,630 per 10 grams, a decrease of Rs 1457, as a rally in the equity market dampened risk sentiment. This marks a notable downturn since June 16th, when gold reached a record high of Rs 1,01,078 on the MCX.
The price drop is attributed to multiple factors, including easing geopolitical tensions following announcements regarding the Iran-Israel situation, leading to a reduced demand for the safe-haven asset.
“Gold prices are on track for a weekly decline, weighed down by easing geopolitical tensions in the Middle East and optimism surrounding upcoming trade agreements, which have reduced demand for safe-haven assets,” explained Aksha Kamboj, Vice President of India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures. Kamboj also noted that while central bank purchases and the upcoming festive season could limit further downside, a near-term rally appears unlikely.
Furthermore, recent comments from Federal Reserve Chair Jerome Powell, indicating that rate cuts are not imminent, have also contributed to the downward pressure on gold prices. “The retreat in gold comes amid geopolitical de-escalation, with signs of diplomatic resolution across major conflict zones, reducing safe-haven demand,” added Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities. He also highlighted the weaker dollar index as a sign of easing global risk, prompting investors to shift funds into riskier assets.
Despite the overall downward trend, Rahul Kalantri, VP Commodities at Mehta Equities, noted that a sharp drop in the US dollar index and a contraction in US Q1 GDP provided some support to precious metal prices. He also provided key support and resistance levels for gold in both international markets and rupee terms.
Analysts predict continued volatility in the near term, with prices expected to fluctuate between Rs 93,500 and Rs 97,500 on the MCX. While the long-term outlook remains uncertain, the current market conditions suggest that gold’s role as a safe haven asset is being challenged by a more optimistic global economic outlook.
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