Gold Rates Update – Gold to Get Cheaper for the Next Three to Four Months! Know What Experts Said

New Delhi: Tense conditions currently prevail in the Middle East, rendering the situation fragile. The conflict involving the U.S., Israel, and Iran has also impacted global commerce. Instability persists regarding the crisis in West Asia. Consequently, a decline is expected to be recorded in the broader market as well as in silver prices.
On the MCX, Gold Futures are seen trading at ₹151,152, down by ₹600. Silver Futures are trading at ₹240,503, having dropped by ₹982. The bullion market, too, reflects a downturn in the prices of gold and silver. The price of 24-carat pure gold stands at ₹150,664 per 10 grams, while silver is seen trending at ₹240,890 per kilogram.

• Reserves at 2,304.76 tonnes (Apr 1)
• Fell by 6.22 tonnes in March alone
• ~21.8 tonnes sold since Jan 2026
• Sales valued at ₹33,440 crore
• Budget deficit at $61.2B (end-Mar)
• Outlook (2–4 months)
  • Decline driven by profit-booking
  • Rate cut expectations remain slim
  • Strong dollar bearish for commodities
  • Metals to trade in a range
  • Downward bias expected to persist

Key Reasons for the Decline in Gold and Silver Prices

According to experts, the primary reasons for the decline in gold and silver prices are a strengthening U.S. dollar, interest rate dynamics, and the lingering uncertainty surrounding the Middle East conflict. Market participants remain cautious regarding the prospects of peace talks between the U.S. and Iran. Iran has demanded the lifting of the U.S. naval blockade in the Strait of Hormuz, whereas Washington has focused on ensuring the complete reopening of this maritime route.

This situation has resulted in a continued standoff between the two sides. Concurrently, oil prices have surged above $100 per barrel. This rise signals ongoing disruptions in supplies flowing through the strait and has reignited fears of an energy-driven inflationary shock.

Kitco Report on Russia’s Gold Reserves Sparks Concern

It may come as a surprise to learn that, according to a report by Kitco, Russia is utilising its gold reserves to offset its rising expenditures. As of April 1, 2026, Russia’s total gold reserves had dwindled to 2,304.76 tonnes. A decline of 6.22 tonnes was observed in the month of March alone. Why Did Russia Sell So Much Gold?
Since the beginning of 2026, Russia’s Central Bank has sold approximately 22,000 kilograms (21.8 tonnes) of gold in the market. This sale is valued at ₹33,440 crore. This move comes at a time when Russia’s budget deficit has reached an alarming level, recorded at $61.2 billion by the end of March.

The Downtrend Could Persist for the Next 2 to 4 Months

According to experts, the market is currently displaying signs of weakness. With inflation on the rise, expectations for interest rate cuts appear slim. Furthermore, rising crude oil prices are creating conditions that favour a strengthening U.S. dollar. This scenario is bearish for all commodities, including gold, silver, and base metals. However, experts suggest that this decline in gold and silver prices is temporary; driven by profit-booking, these precious metals are expected to continue trading within a specific range—albeit with a downward bias—over the next 2 to 4 months.