Gold dips 0.81% this week as US-Iran talks stall, Fed cut hopes fade
Synopsis
Gold's 0.81% weekly slide tells a layered story — stalled US-Iran diplomacy, a PCE inflation print at a near three-year high of 3.5%, and firmer Treasury yields have collectively squeezed the metal's safe-haven premium. With COMEX gold stuck below the $4,700–$4,760 resistance band, the next move hinges on a diplomatic breakthrough or a Fed pivot signal — neither of which looks imminent.
Key Takeaways
Gold fell 0.81 per cent during the week ended 2 May 2026 , with MCX gold June futures at ₹1,51,363 .
24-carat gold (10 grams) dropped from ₹1,51,495 on Monday to ₹1,50,263 on Thursday, per IBJA data.
COMEX gold trades near $4,620–$4,650 ; major resistance seen at $4,700–$4,760 .
US PCE inflation hit 3.5 per cent in March — its highest in nearly three years — reinforcing a higher-for-longer rate outlook.
Gold has fallen nearly 14 per cent since the US-Iran conflict began on 28 February 2026 .
COMEX silver trades above $76 with a constructive but cautious near-term bias.
Gold prices fell 0.81 per cent during the week ended 2 May 2026 as US-Iran negotiations stalled, dimming prospects for near-term interest-rate cuts and triggering corrective consolidation across precious metals. The dip comes even as safe-haven demand continues to provide intermittent support on declines.
Weekly Price Snapshot
On Friday, MCX gold June futures edged up just 0.01 per cent, while MCX silver May futures gained 0.49 per cent. Gold futures currently stand at ₹1,51,363, and silver futures are at ₹2,47,500 per kg.
The price of 10 grams of 24-carat gold was at ₹1,50,263 on Thursday, down from ₹1,51,495 recorded at Monday's market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
International Markets and Geopolitical Pressure
In international markets, bullion dropped as much as 1.2 per cent on Friday, reversing a 1.5 per cent gain from the previous session, weighed down by rising energy costs and firmer US Treasury yields. Gold has fallen nearly 14 per cent since the US-Iran conflict began on 28 February 2026, according to traders.
The Iranian administration maintained that the US blockade would have to end before the Strait of Hormuz could be reopened, according to multiple media reports. Iranian state media reported that Tehran had delivered a fresh proposal for talks to Pakistani mediators, but both sides signalled they were waiting for the other to make the first move.
Point of View
The highest in nearly three years, has effectively closed the door on a near-term Fed rate cut, stripping gold of one of its key tailwinds. Meanwhile, the US-Iran diplomatic deadlock is entering a phase where both sides are performatively waiting for the other to blink, which means the geopolitical risk premium is being discounted rather than priced in. The 14 per cent fall since February 28 is a reminder that even structurally bullish metals can suffer when macro headwinds align — and until either the Fed signals a pivot or the Strait of Hormuz situation resolves, gold's upside is capped by hard resistance at $4,700–$4,760.
NationPress
7 Jul 2026
Frequently Asked Questions
Why did gold prices fall this week?
Gold fell 0.81 per cent during the week ended 2 May 2026 as US-Iran negotiations stalled and hopes for near-term Federal Reserve rate cuts faded. Rising energy costs, firmer US Treasury yields, and a US PCE inflation reading of 3.5 per cent — a near three-year high — reinforced expectations that policy rates would stay higher for longer, pressuring the non-yielding metal.
What are the current MCX gold and silver futures prices?
MCX gold June futures currently stand at ₹1,51,363, while MCX silver May futures are at ₹2,47,500 per kg, as of 2 May 2026. On Friday, gold futures edged up 0.01 per cent and silver futures gained 0.49 per cent.
How much has gold fallen since the US-Iran conflict began?
Gold has fallen nearly 14 per cent since the US-Iran conflict began on 28 February 2026, according to traders. The decline reflects a combination of easing safe-haven demand at peak levels and macro headwinds from elevated US inflation and firmer Treasury yields.
Where is COMEX gold resistance, and what is the outlook?
COMEX gold is trading near the $4,620–$4,650 zone, with major resistance at $4,700–$4,760. Analysts describe the broader trend as constructive but with a cautious near-term bias, with a sustained move higher dependent on a breakout above resistance levels.
How does US inflation affect gold prices?
Higher US inflation — with the PCE price index at 3.5 per cent in March — signals that the Federal Reserve may keep interest rates elevated for longer. Since gold is a non-yielding asset, higher rates increase the opportunity cost of holding it, typically weighing on prices.
