Gold Prices Plunge 6% Ahead of Union Budget 2026 Amid Stronger Dollar, Geopolitical Tensions

• Gold prices opened 6% lower on February 1 at Rs 1,43,205 per 10 grams on MCX, down from Rs 1,52,345.
• Comex spot gold declined 8.25% to just above $4,879 per ounce.
• Stronger dollar, geopolitical tensions (US-Iran, Ukraine-Russia war, Gaza crisis) and US interest rates weigh on prices.
• Sharp fall in prices curbed physical demand; India's gold imports likely to fall due to record prices hitting jewelry demand.
• Augmont Bullion report indicates strong support at $5,200 (Rs 1,60,000), with potential profit-booking towards $5,000–$4,750.

Why It Matters: Gold prices dropped significantly due to a stronger dollar and global uncertainties, impacting demand.