Bearish for Gold: Prices Fall 10% Post US-Iran War; TITAN, MUTHOOTFIN

Gold prices have dropped over 10% since the US-Iran conflict, with a further 0.23% decline on April 15. This is driven by factors like rising interest rates, a strengthening US dollar, and investors booking profits.

This trend indicates a significant shift in global investor sentiment, moving away from safe-haven assets like gold. For the Indian market, it impacts companies whose business models are tied to gold prices, either through sales or as collateral.

Jewellery retailers like TITAN and PCJEWELLER could face headwinds due to lower gold prices impacting sales value and inventory. Gold loan NBFCs such as MUTHOOTFIN and MANAPPURAM might see increased risk in their loan portfolios due to reduced collateral value.

Traders should monitor global interest rate movements, the US dollar index, and any resurgence of geopolitical tensions. Watch for central bank gold buying trends and demand from major gold-consuming nations like India and China, especially during festival seasons.

• •Gold prices fell over 10% since US-Iran war.
• •Dropped 0.23% to ₹1,54,464 per 10 grams on April 15.
• •Internationally, spot gold declined 0.6%.
• •Attributed to rising interest rates, stronger US dollar, and profit-taking.
• •Risk flag: Sudden escalation of geopolitical tensions