Gold price today: Rates drop amid escalating Israel-Iran conflict; experts unveil strategy for MCX Gold

Gold price today: Gold rates declined in the domestic futures market in intraday trade on Friday (June 20), even as tensions between Israel and Iran escalated further, and the US dollar declined after the US Federal Reserve Chair Jerome Powell's hawkish tone. MCX Gold August 5 contracts traded 0.56 per cent lower at ₹98,777 per 10 grams around 4:45 PM.

The Israel-Iran war has entered the second week, with both countries bombing each other. According to a Reuters report, Israeli Prime Minister Benjamin Netanyahu said on Thursday that while Israel's military actions are not aimed at toppling Iran's leadership, such an outcome could be a consequence of the ongoing conflict.

According to media reports, Israel bombed nuclear targets in Iran on Thursday, and Iranian missiles hit an Israeli hospital overnight. The Iranian Revolutionary Guard Corps (IRGC) has vowed to intensify attacks against Israel.

Fears are mounting that tensions between the two countries could escalate into a major crisis, with the active involvement of the US and other countries.

Meanwhile, White House Press Secretary Karoline Leavitt on Thursday (June 19) said President Donald Trump will decide on the US role in the Iran-Israel conflict within two weeks.

While global uncertainty is positive for gold prices, waning hopes of rate cuts from the US Federal Reserve seem to be weighing on gold prices.

Fed Chair Powell said inflation may rise over the summer as the impact of President Trump’s tariffs reaches US consumers.

Hawkish tone of the Fed dragged the dollar index by nearly 0.40 per cent on June 19. 

"Gold prices remain sluggish, as concerns over potential high inflation signalled by the US Federal Reserve have overshadowed the safe-haven demand typically expected during geopolitical tensions like the ongoing Middle East crisis," Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures, observed.

"Rising inflation tends to weigh on gold, which offers no interest income. After a strong rally earlier in 2025, any further gains in bullion are likely to depend on a significant escalation in the West Asia conflict. For now, investor interest appears to be shifting toward alternative haven assets such as silver and platinum," said Kamboj.

Experts' strategy for MCX Gold

Manoj Kumar Jain of Prithvifinmart Commodity Research expects gold prices to remain volatile and suggests buying on dips.

"We expect gold and silver prices to remain volatile in today’s session and suggest buying gold on dips around ₹98,800 with a stop loss of ₹98,400 for the target of ₹99,500," said Jain.

According to Jain, gold has support at $3,366-3,330, while resistance is at $3,404-3,427 per troy ounce and silver has support at $36.00-35.55, while resistance is at $36.70-37.15 per troy ounce in today’s session.

Jain said MCX Gold has support at ₹98,800-98,550 and resistance at ₹98,660-99,000, while silver has support at ₹1,06,500-1,05,750 and resistance at ₹1,08,200-1,09,000.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $3,340-3,315 while resistance is at $3,380-3,400. Silver has support at $35.75-35.50 while resistance is at $36.35-36.55.

In INR terms, gold has support at ₹98,750-98,550 while resistance is at ₹99,550-99,740. Silver has support at ₹1,06,380-1,05,500 while resistance is at ₹1,08,350-1,09,000, said Kalantri.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said developments on US trade tariffs and Middle East military engagement will drive volatility. 

"Any signs of de-escalation or non-involvement from the US in the Iran-Israel conflict could keep gold under pressure. On the flip side, renewed tensions will continue to support prices. Gold is expected to trade in a volatile range of ₹97,500 to ₹1,00,000 in the near term," said Trivedi.

Read all market-related news here

Read more stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.