Gold futures drops nearly 4 pc to ₹1.47 lakh/10g as Trump's Iran warning lifts dollar
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Gold prices plunged Rs 6,004 to Rs 1.47 lakh per 10 grams in futures trade on Thursday amid intensified geopolitical tensions in West Asia that boosted the US dollar and dampened the investors' sentiment.
Snapping a four-day winning streak, the yellow metal for the June delivery plunged Rs 6,004, or 3.91 per cent, to Rs 1,47,704 per 10 grams on the Multi Commodity Exchange.
Analysts said precious metal prices declined as the US dollar rebounded following remarks by President Donald Trump indicating a potential escalation in the ongoing conflict with Iran.
Gold prices declined on Thursday, ending a four-day gain, as the US dollar rebounded after President Donald Trump warned that the military campaign in Iran could continue with more intense action over the next two to three weeks, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
In the international markets, Comex gold futures for the June contract also ended a four-day rally, depreciating USD 194.70, or 4.05 per cent, to USD 4,618.40 per ounce.
In an address from the White House, President Donald Trump said Washington's core strategic objectives in Iran were nearing completion. However, he added that the US would hit Iran "extremely hard" for the next two to three weeks.
Meanwhile, Trump offered no timeline to the end of the war on Iran and no solution to the closure of the Strait of Hormuz that has crippled global financial markets.
Jigar Trivedi said this stance by the US President had strengthened the US dollar, adding that the greenback has recently emerged as a safe-haven asset, putting pressure on dollar-denominated precious metals.
Crude oil prices also resumed their advance, reinforcing inflation concerns and expectations of tighter monetary policy.
"Traders have fully priced out the prospect of interest rate cuts in 2026 by the US Federal Reserve, a stark reversal from pre-war expectations of two cuts," Trivedi said.
Govt imposes import curbs on gold
In a separate decision, the government on Wednesday announced curbs on imports of gold, platinum and silver jewellery with immediate effect, a move aimed at checking misuse of free trade agreements (FTAs).
These restrictions will operate irrespective of any prior contract, irrevocable letter of credit, advance payment, shipment status, or any other commitment, the Directorate General of Foreign Trade (DGFT) said in a notification.
Accordingly, it said, the benefit of transitional arrangements shall not be available.
"The Import Policy of items under CTH (customs tariff heading) 7113 is revised from 'Free' to 'Restricted' with immediate effect," it said.
Articles of gold, silver and platinum jewellery are covered under this heading. Importers of these goods would now need permission or a license from the DGFT.
With this, now there are restrictions on all gold, silver and platinum jewellery imports.
However, it added that imports by 100 per cent Export Oriented Units and units located in Special Economic Zones (SEZS) shall not be subject to these restrictions.
Further, imports under the schemes for export of Gems and Jewellery under a chapter of the foreign grade policy will also be exempt from these restrictions.
An industry official said that some importers were misusing the India-Asean FTA. The official urged the government to make the licensing procedure easy so that genuine players do not suffer from the move.
India has a free trade pact in goods with the 10-nation South East Asian nation bloc Asean since 2010.
In November last year, the government imposed import curbs on certain types of platinum jewellery till April this year. In September 2025, similar curbs were there on silver jewellery till March this year.
Some traders were trying to use the FTA to make a quick buck by exploiting duty differentials and circumventing tariffs, the official said, adding the move was aimed at curbing imports of these precious metals in the name of unstudded jewellery from countries like Thailand.