Gold Prices Decline Amid Rising Oil Costs: Is Now the Time to Invest?
Soaring oil prices put gold rate today under pressure. Is it the right time to buy gold?
Mint
Image: Mint
Gold prices have fallen over 10% globally since the onset of the US-Iran conflict, primarily due to surging crude oil prices. Domestic spot gold prices in India have decreased by approximately 5%, but analysts suggest that long-term investment in gold could be beneficial, anticipating a potential price increase of up to 15% by 2026.
- 01Gold prices have dropped over 10% globally since February 28 due to rising crude oil prices.
- 02Domestic gold prices in India fell by around 5%, with current prices at ₹1,53,018 per 10 grams.
- 03Analysts expect gold prices to potentially rise by 15% by 2026, reaching a target range of ₹1,70,000 to ₹1,85,000.
- 04The ongoing US-Iran tensions and rising Brent crude prices are contributing to inflationary pressures.
- 05Investment in gold is recommended for long-term stability amidst current market volatility.
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Gold prices have experienced a significant decline of over 10% globally since the US-Iran conflict escalated on February 28, largely driven by soaring crude oil prices. In India, domestic spot gold prices have dropped approximately 5%, currently standing at ₹1,53,018 per 10 grams. Despite this downturn, gold remains up 14% year-to-date, following a remarkable 75% increase in 2025. On Monday, gold futures for June 2026 delivery fell by ₹1,590 or 1%. The surge in Brent crude prices, which crossed $95 per barrel, is attributed to renewed tensions in the Strait of Hormuz, where Iranian forces have reportedly launched drone attacks. This situation has strengthened the US dollar, further pressuring gold prices. Analysts, including Anuj Gupta, suggest that now could be an opportune time to invest in gold for the long term, citing potential easing of tensions and consistent demand from China. Brokerage firm Axis Direct projects a possible 15% upside in gold prices by 2026, with a target range of ₹1,70,000 to ₹1,85,000.
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The decline in gold prices may affect investment decisions for individuals considering gold as a hedge against inflation. Investors may find current prices attractive for long-term purchases.
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