Gold Price Analysis: Why are gold prices not increasing despite the war? Experts told these 5 surprising reasons

News India Live, Digital Desk: Usually investors run towards gold as a ‘safe haven’ during times of crisis, but this time the market mathematics has changed. 5 big reasons for sluggishness in pricesStrength of Dollar (Strong US Dollar): Whenever global instability increases, investors invest in US dollar along with gold. At present the dollar index has become quite strong. Since gold is bought in dollars in the international market, the dollar becomes expensive for other countries to buy gold, which puts pressure on both demand and price. Liquidity and Margin Call (Liquidity Stress): At the beginning of the war, there has been a huge fall in the stock markets (Sensex & Nifty). In such a situation, big investors need cash to cover their stock market losses. They often sell their gold and fulfill ‘margin calls’, which increases the supply of gold in the market and causes prices to fall. Impact of Crude Oil: Due to tensions near the ‘Strait of Hormuz’, crude oil prices have crossed $100. There is a danger of inflation increasing due to oil becoming expensive. In such a situation, the possibility of cutting interest rates by the US Federal Reserve has reduced, which is a negative sign for gold. Profit Booking: In the beginning of 2025 and 2026, gold had already reached its record level (about ₹ 1.60 lakh per 10 grams). Many investors are booking their profits at this high level, due to which correction is being seen in the prices. Rising Bond Yields: People are also turning towards Government Bonds as a safe investment because they are getting fixed interest, whereas no regular interest is available on gold. What does the future forecast say? Market experts believe that this decline may be short-term. Is. If the war drags on and there are signs of a global economic recession, gold prices could rise again by 15% to 20% by the end of the year.