Gold Prices Tumble Amid West Asia Conflict

Gold prices have faced downward pressure following the outbreak of the West Asia conflict on February 28, 2026. The precious metal has seen a notable correction of approximately 15%, largely attributed to the strengthening US dollar. Analysts note that the US dollar's safe-haven appeal and its status as a net crude oil exporter contribute to its strength, impacting non-dollar assets like gold.

Despite the current volatility, a constructive medium-term outlook for gold remains. Factors such as concerns over the US dollar's reserve status, rising public debt, and consistent central bank buying are expected to provide structural support. Projections indicate that international gold prices could trade between $4,800-$5,000 per ounce by December 2026 and potentially reach $5,400-$5,600 by the end of 2027.

However, aggressive monetary tightening by major central banks, particularly the US Federal Reserve, could temper these gains. Domestically, Indian gold prices have surged around 20% in 2026 due to rupee depreciation and increased customs duty. Local prices are expected to range between Rs 1.5 lakh and Rs 1.9 lakh per 10 grams through the remainder of the year, influenced by global trends and currency fluctuations.