Why Gold Gets Cheaper Despite Iran War — 5 Reasons Explained by Dr.Mrunal Patel #economy

🎁 Win Rs.8 lakh ke prices in Unacademy UCSC Test at 11AM & 5PM https://unacademy.onelink.me/M2BR/9nexlkl0 Dr. Mrunal Patel, UPSC Educator and Economy Subject Expert, explains why gold fell in March 2026 despite the ongoing Iran war — a counterintuitive current affairs topic for UPSC. Gold futures above Rs 1,60,000 dropped to Rs 1,40,000 — nearly 13% decline. Five reasons: REASON 1: SPECULATOR PROFIT BOOKING Speculators trade futures and options (not physical gold), magnifying gains 10x. They pumped gold futures, attracted FOMO retail buyers, then exited and rotated capital into oil and dollar futures. REASON 2: ZIGZAG PRICE CORRECTION No asset rises in a straight line. Old investors book profits periodically, creating short-term corrections. REASON 3: CENTRAL BANK DEMAND SLOWDOWN RBI grew gold reserves from 613 tonnes (2018) to 880 tonnes (Dec 2025) via de-dollarisation — selling dollars to reduce USD dominance in forex reserves. By 2026, global central bank gold buying has slowed, limiting upside. REASON 4: CAPITAL ROTATION Speculators see higher return potential in oil (war-driven) and the dollar. Capital moves from gold to oil and dollar futures. REASON 5: DOLLAR STRENGTHENING Rising oil causes US inflation. Fed likely hikes rates, shrinking dollar supply and pushing its value higher — from 94 to potentially 100 rupees. Speculators shift from gold to dollar instruments. Useful for UPSC, SSC-CGL, State PSC, Banking, IBPS, RBI Grade B, CAPF, CDS, ACIO, APFC. Enroll at Mrunal.org on Unacademy for structured economy preparation. ALTERNATIVE TITLES: 1. Gold Futures Drop 13% in 2026 — Speculators and De-Dollarisation Explained 2. Gold Prices Falling Despite Iran War — UPSC Economy Current Affairs 3. Why Gold Cheap When Oil and Dollar Rise — Economy Concept UPSC TAGS: gold prices falling 2026, gold futures explained UPSC, why gold is cheap, de-dollarisation RBI, UPSC economy current affairs, financial markets UPSC, futures and options basics, RBI gold reserves, US Federal Reserve rates, speculator vs investor, oil prices inflation, Mrunal Patel economy, free UPSC economy lecture, RBI Grade B economy, SSC CGL economy, IBPS economy, capital markets UPSC, safe haven assets UPSC, commodity markets explained, UPSC 2026 preparation ---