Gold prices dropped by ₹562 to ₹1.58 lakh per 10 grams in futures trade, tracking losses in the global markets after fresh strikes were exchanged between the U.S. and Iran, raising concerns over the prospects of a ceasefire agreement.

On the Multi Commodity Exchange, the August contract of the metal depreciated by ₹562, or 0.35%, to ₹1,58,784 per 10 grams in a business turnover of 8,266 lots.

Analysts said investors remained focused on developments in West Asia after fresh missiles and drone strikes between the U.S. and Iran drove crude oil prices higher and raised concerns over the prospects of a ceasefire arrangement.

The latest escalation came after the United States Central Command (Centcom) in a post on X said it targeted an unladen tanker heading towards Iran's Kharg Island after its crew ignored repeated warnings. The U.S. military said it repelled Iranian reprisal strikes in the region and attacked sites on Tehran's Qeshm Island.

Later, Iran retaliated with missile strikes towards Kuwait and Bahrain. Tehran has repeatedly attacked targets in both countries, where U.S. military bases are located.

In the international markets, Comex gold futures for August delivery declined nearly 1% to $4,482.30 per ounce in New York.

"Gold prices edged lower in early morning trade as investors remained cautious amid ongoing geopolitical tensions in the West Asia and ahead of a key batch of U.S. economic data that could offer further clarity on the Federal Reserve's policy outlook," Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd., said.

Earlier, the U.S. and Iran indicated progress toward a framework agreement to end hostilities, but uncertainty persists: Iranian media reported that communication between the two sides has stalled, while President Donald Trump maintained that negotiations remain active.

"Elevated oil prices continue to fuel inflation concerns, limiting gold's safe-haven appeal as traders increasingly price in the possibility of tighter monetary policy," Mr. Modi said.

Meanwhile, U.S. job openings numbers unexpectedly rose in April, reinforcing expectations that the Federal Reserve could keep interest rates higher for longer. Brent crude, the global oil benchmark, spurted by 2.22% to $98.13 per barrel on Wednesday (June 3, 2026).