Gold price today: Buy the dip as Sensex sinks on Iran-US tensions?

Gold and silver prices edged lower on July 13, tracking weakness in international bullion markets, even as investors weighed rising geopolitical tensions and a sharp sell-off in domestic equities.

On the Multi Commodity Exchange (MCX), gold futures declined 1.2 per cent to around ₹1.42 lakh per 10 grams during morning trade. Silver futures also slipped 2.23 per cent, hovering near ₹2.17 lakh per kilogram.

The fall in bullion prices came on a day when Indian benchmark indices opened sharply lower.

Investor sentiment remained under pressure after fresh US military strikes on Iran over the weekend heightened tensions in West Asia, pushing crude oil prices higher and triggering a global risk-off mood.

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The BSE Sensex, which had settled at 77,569.39 in the previous session, opened at 76,963.35 before slipping to 76,920.34 by 9.20 am, down 649.05 points or 0.84 per cent. The NSE Nifty 50 also declined 184.50 points, or 0.76 per cent, to 24,022.40.

Despite the day's decline, gold continues to be viewed as a preferred safe-haven asset during periods of market volatility and geopolitical uncertainty.

Financial experts believe long-term investors may consider accumulating the precious metal in phases if prices remain under pressure, instead of making large one-time purchases.

In the retail market, gold is mainly available in two purities, 24-karat and 22-karat. While 24-karat gold is considered the purest form and is generally preferred for investment, 22-karat gold is widely used for jewellery because the added alloy metals improve its strength and durability.

Going ahead, traders will closely watch global economic data, the US Federal Reserve's interest rate outlook and movements in the US dollar, as these factors are expected to influence the direction of gold and silver prices in the coming days.