Gold dips under Rs 1.5 lakh: Is this the right time to buy or wait?

Gold prices have slipped below the Rs 1.5 lakh mark, and that's got many investors thinking. Is this a good opportunity to step in, or is it better to wait and watch?

In Short

• Gold and silver opened lower on MCX, gold below Rs 1.5 lakh
• Stronger US dollar and Middle East tensions pressure prices
• Crude oil prices rise, inflation fears dampen rate cut hopes

Gold and silver have opened the week on a weaker note, and if you’ve been following the trend, the recent dip might have caught your attention. A mix of global tensions, a stronger dollar, and rate cut worries seem to be at play.

PRICES UNDER PRESSURE

Gold and silver opened lower on the Multi Commodity Exchange (MCX) on Monday. Gold fell below the Rs 1.5 lakh mark and was trading at Rs 1,49,513, down Rs 167, at the time of writing. Silver dropped more sharply, falling Rs 1,336 to Rs 2,31,159.

The fall is largely due to a stronger US dollar, which tends to make precious metals less attractive. At the same time, global tensions have added to market uncertainty.

MIDDLE EAST TENSIONS WEIGH ON SENTIMENT

Tensions in the Middle East have risen after US President Donald Trump warned Iran of possible strikes on key infrastructure if the Strait of Hormuz is not reopened.

This has pushed crude oil prices higher, raising concerns around inflation. Alongside this, strong US jobs data has reduced hopes of an early interest rate cut by the US Federal Reserve. These factors together have put pressure on gold and silver.

According to Gaurav Garg, research analyst at Lemonn markets desk, “The recent strength of the US dollar has weighed heavily on precious metals, as escalating tensions in the Middle East and rising inflation fears continue to dampen investor sentiment, leading to a cautious outlook for the Federal Reserve's rate cuts. Additionally, crude oil prices edged down to $111.33 per barrel (approximately Rs 10,336), reflecting a slight decrease of 0.19%, as traders remain vigilant amid geopolitical uncertainties.”

Market expert Ponmudi R, CEO of Enrich Money, says gold is showing signs of weakness at higher levels.

“MCX Gold is trading in the Rs 1,48,000–Rs 1,49,000 range with visible selling at higher levels. The market is not able to sustain rallies, indicating fading strength,” he said.

He added that a move above Rs 1,50,000 could revive momentum and push prices towards Rs 1,52,000–Rs 1,55,000. However, if prices fall below Rs 1,47,000, the downside could extend to Rs 1,45,000 or even Rs 1,40,000.

SILVER REMAINS VOLATILE

Silver is also showing signs of instability, with prices moving in a narrow but volatile range.

“MCX Silver is hovering around Rs 2,30,000–Rs 2,31,000 with high volatility and lack of sustained buying. The market is trying to hold, but not showing strength,” Ponmudi R explained.

He pointed out that resistance lies at Rs 2,33,000–Rs 2,34,000. A breakout above this could take prices higher to Rs 2,37,000–Rs 2,40,000. On the downside, if prices slip below Rs 2,30,000, further decline towards Rs 2,25,000 or even Rs 2,20,000 is possible.

SHOULD INVESTORS BUY OR SELL?

For now, the overall mood in the market remains cautious. Prices are not showing strong upward movement, and global factors continue to create uncertainty.

This may not be the best time for aggressive buying. Investors who are planning to enter can consider buying in small amounts on dips rather than investing all at once. Those already holding gold or silver may prefer to stay invested but should keep a close eye on key price levels.

In short, patience seems to be the safer approach right now, as the market looks for clearer direction.

- Ends