The ongoing major geopolitical tension between Iran, Israel and America has shaken everyone from the stock market to the global gold market. But this time the prices of gold have surprised people a bit. Amid global conflicts, there has been a huge fall in gold prices. On one hand, gold is considered a safe investment, while on the other hand, its prices are expected to increase by 40 percent by the end of the year. Let us understand what is going on with gold prices, why it has fallen and what you should do at this time.

fall in gold prices

On February 27, a day before the beginning of the conflict between Iran-Israel and America, the price of gold in India was ₹ 1,60,000 per 10 grams. On June 19, a day after the ceasefire, the price of gold was recorded at ₹ 1,45,000 per 10 grams. Between February 27 and June 19, 2026, gold prices have fallen by 10%, while in the international market they have fallen by 20%. People are considering such relief in gold prices as an investment opportunity. But American banking institution JP Morgan has also given its opinion regarding the trends. JP Morgan says that by the year 2026, gold prices may increase by 60%.

First the prices decreased, then increased: buy now or not?

As soon as there is relief in the prices of gold, people insist on buying it. In such a situation, demand increases and then prices also start increasing.

Why did gold prices fall?

According to a report by Dainik Bhaskar, gold prices in the global market are fixed in dollars. When the dollar becomes stronger, gold will also become expensive. In such a situation, people buy less gold. Due to this the demand starts decreasing. According to the report, the dollar index increased by 3% after the Iran conflict. Because India buys gold in exchange for dollars, import duty is also imposed. The value of the dollar is high, hence the import bill has also become high. Due to this the demand for gold reduced and the prices automatically came down.

Is the risk on gold increasing?

It has been told in this report that between the year 2025 and 2026, the prices of gold in India had increased by 74%. Because there is a possibility of a fall in the prices of metals like gold and silver after a record rise, when gold reached its highest, people sold gold heavily to save profits. Due to this the prices of gold fell. The dollar has become stronger than gold. James Meadway, a member of Britain’s Progressive Economic Forum, believes that gold is no longer as safe an asset as it was two years ago. It has now become the best speculative asset. Central banks of countries have reduced the purchase of gold and big investors are also afraid of the instability of gold.

Why did India stop buying gold?

Big buyers of gold market in India have put a temporary brake on the purchase of gold. Experts say that in December 2025, India had imported gold worth $4.13 whereas by January it had increased to $12.07. Due to this, sufficient stock of gold was accumulated. Because the domestic demand for gold is low, traders also do not want to increase the stock of gold.

Will gold reach ₹2 lakh by the end of the year?

Many big banking and financial institutions including JP Morgan are predicting another rise in gold prices. JP Morgan estimates that the price of gold may reach $6,500 by 2027. There is a possibility of 20% to 40% jump in this. If understood according to this, with a 20 percent increase, gold will be ₹ 1.74 lakh per 10 grams, with a 30 percent increase, it will be ₹ 1.88 lakh per 10 grams and with a 40 percent increase, gold prices will cross ₹ 2 lakh.

What is the reason for the rise in gold prices?

Continuous purchases of gold by the central banks of different countries may be responsible for the rising prices of gold by the year 2027.

Year 2022: Amid the Russia-Ukraine conflict, the US along with European countries banned Russia’s foreign reserves worth $3000 billion.
This reduced the world’s confidence in the dollar. Foreign reserves started being shifted to other currencies. People started collecting gold. This increased the demand and price of gold.
2025-26: The World Gold Council said that all the central banks of the world have continuously purchased 900 tonnes of gold.
2026: From then till now, China has bought gold extensively. Till February 2025, 1 ton of gold has been purchased every month. Bought 5 tonnes of gold in March and 8 tonnes in April.
2027: Following China’s example, banks of other countries have also laid emphasis on the purchase of gold, due to which demand will increase by the end of the year and gold prices will once again see a record increase.

Then buy gold or not?

In the report of Dainik Bhaskar, Kedia Advisory, a firm which provides analysis related to share market, gold and commodities, says that the Federal Reserve of America has indicated to increase interest rates on June 17. In this condition, there is more investment in dollars and bonds. Therefore, gold prices may fall to some extent. Therefore, you can buy gold for long term investment in the next 1 to 3 months. After this, a surprising increase in gold prices may be seen.

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The post Gold falls flat amid Iran-Israel war: ₹ 1.45 lakh now, will cross ₹ 2 lakh at the end of the year? Next 3 months are the best, but be careful! appeared first on Latest.