COMEX gold edged lower from a two-week high as oil prices surged after Donald Trump speech and dollar regained momentum. The dollar index rebounded after Trump reiterated that Iran's military capabilities were significantly weakened, signaling an end to the conflict. Gold witnessed a wild run in March, witnessing highly volatile movement but generally trending lower despite escalating Middle East tensions. The metal lost around 12% in March 2026 after testing a three and half month low of $4100 per ounce. While the counter edged up thereafter and moved near $4800 per ounce, sentiments remain highly volatile amid escalating Middle East tensions, with the conflict entering its fifth week and no clear resolution in sight. In March, price action showed that despite ongoing geopolitical risks, gold continues to trade under pressure and is nearly 16% below its record high of $5626 hit in January. The surge in oil prices has reignited inflation concerns, strengthening expectations that central banks will maintain a tighter policy stance for longer, thereby reducing the appeal of non-yielding assets like bullion. Adding to the downside, a firm US dollar and a slowdown in central bank buying have further weakened demand. COMEX Gold shed around 2% in the truncated week gone by. MCX Gold futures approached highs above Rs 151000 per 10 grams and closed just under Rs 150000 per 10 grams.

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