Spot gold down as military hostilities in West Asia raise inflation concerns
This story was originally published at 14:07 IST on 23 March 2026
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By Reshma Ravi
MUMBAI – Gold opened lower in the spot market Monday tracking futures contracts on the Multi Commodity Exchange of India and COMEX amid the ongoing military hostilities in West Asia which have raised concerns over inflation that could prompt central banks to keep rates higher for longer, traders said.
In Mumbai, the spot price of gold of 99.9% purity opened at INR 135,141 per 10 grams, down from Friday's closing price of INR 147,218. Dealers are offering a discount of INR 3,200-INR 4,000 per 10 grams, traders said. They are offering discounts even after the fall in prices to lure customers, said Kumar Jain, spokesperson for the India Bullion and Jewellers Association.
The retail demand, which was seen down, has improved slightly due to festival buying, said Nitin Kedia, national general secretary of All India Jewellers & Goldsmith Federation. "But in the past whenever prices used to come down this way, then demand used to be huge," Kedia added. Additionally, in April, the retail demand from rural areas is likely to pick up, and prices are expected to stabilise and move up from the second week of April, Kedia added.
The conflict in West Asia entered its fourth week and has shown no signs of easing. On Sunday, Iran said it would completely shut down the Strait of Hormouz and launch retaliatory attacks on regional energy and water infrastructure if the US attacks its power plants, Al Jazeera reported. This comes in response to US President Donald Trump on Sunday giving Iran a two-day deadline to reopen the Strait of Hormuz or have its power plants bombed. "If Iran doesn't FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!" Trump posted on social media on Saturday. End
Edited by Vandana Hingorani
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