At 0341 GMT, spot gold was down 0.2% at $3,362.29 per ounce, while US gold futures dropped to $3,378 an ounce.
“The US strikes on Iranian nuclear facilities resulted in safe-haven flows into the dollar,” said Tim Waterer, Chief Market Analyst at KCM Trade. “This uptick in the dollar pegged gold back, leading to a subdued performance despite the geopolitical risk.”
India gold rates remain firm
In India, gold held steady. The price of 24 karat gold stood at ₹1,00,690 for 10 grams. For 22 karat, it was ₹92,300, while 18 karat gold was priced at ₹75,520, according to Goodreturns.
Geopolitical tensions rise
Tensions flared as the US launched strikes on Iran’s Fordow nuclear facility using bunker-buster bombs. Tehran vowed to respond. Meanwhile, Israel and Iran continued to exchange missile attacks.
An Israeli military spokesperson confirmed that airstrikes had targeted sites in western Iran.
US President Donald Trump raised the possibility of a regime change in Iran, further unsettling the region. Still, global markets remained calm. Shares in Asia slipped modestly, while oil briefly touched five-month highs.
Safe-haven demand split
Despite the geopolitical uncertainty, gold failed to extend gains seen earlier in the session.
“Gold saw an initial spike post the US strikes but couldn’t hold those gains, suggesting the rally may have peaked for now,” said Aksha Kamboj, Vice President of the India Bullion and Jewellers Association and Executive Chairperson of Aspect Global Ventures.
She added, “The yellow metal is likely awaiting a stronger response from Iran before moving decisively higher. Rising oil prices, sticky inflation, and fewer rate cut expectations from the Fed are shifting safe-haven flows toward the dollar.”
Outlook: Key triggers ahead
Markets are now eyeing two key events this week. Fed Chair Jerome Powell is scheduled to testify before Congress. Investors are also awaiting the US Personal Consumption Expenditures (PCE) inflation data, a key measure of price stability.
On the technical side, Reuters analyst Wang Tao noted that spot gold could retest support at $3,348 per ounce. A break below may lead prices down to $3,324 an ounce.
–With Reuters inputs
