Gold price prediction: What will be gold rates next week as U.S.-Iran war continues to intensify?

Even as geopolitical tensions intensify with the Middle East conflict entering its fifth week, gold prices in India remain nearly 17 per cent below their record peak.

Gold prices ended the week on a positive note, but the broader trend reflects pressure on bullion. Market experts said that the ongoing geopolitical uncertainty initially boosted gold’s appeal as a safe-haven asset. However, sentiment shifted after US President Donald Trump’s address dashed hopes of a ceasefire in the US-Iran conflict. Even as geopolitical tensions intensify with the Middle East conflict entering its fifth week, gold rates remain extremely volatile.

Gold Rate Prediction

“Markets now shift focus to key US data including Non-Farm Payrolls, ADP employment, and unemployment rate, which could drive sharp volatility,” an analyst stated.

The escalation triggered a sharp rally in crude oil prices, which in turn strengthened the US dollar and reignited inflation concerns globally. A stronger dollar typically makes gold more expensive for holders of other currencies, thereby capping its upside.

Analysts noted that this dynamic has played a key role in preventing gold from testing its previous highs despite heightened geopolitical risks. Adding to the pressure, recent US economic data has pointed to resilience in the world’s largest economy.

Better-than-expected nonfarm payroll numbers indicated that the labour market remains strong, which could ease immediate concerns around a slowdown. This has strengthened expectations that the US Federal Reserve may continue to maintain a hawkish stance on interest rates.

Higher interest rates reduce the appeal of non-yielding assets like gold, further limiting its upward momentum.

Despite these headwinds, gold managed to post a weekly gain of around 2.20 per cent. Analysts believed that the trajectory of gold prices will now depend on how the geopolitical situation evolves and whether inflationary pressures persist in the coming weeks.

“Overall, gold is expected to remain highly volatile with event-driven moves in the near term," a market expert mentioned.