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Gold prices slipped more than 3% on Monday, extending their drop to a roughly four-month low, as an escalating Middle East conflict stoked inflation concerns and expectations of higher global interest rates.

FUNDAMENTALS

* Spot gold was down 3.3% at $4,340.09 per ounce, as of 0100 GMT, extending losses for a ninth consecutive session. The metal, ‌which fell ⁠on ⁠Monday to its lowest level since January 2, lost more than 10% last week.

* U.S. gold futures for April delivery fell 5% to $4,347.

* Escalating the three-week-old war, Iran said on Sunday it would strike the energy and water systems of its Gulf neighbours in retaliation if U.S. President Donald Trump follows through with a threat delivered a day ⁠earlier to ‌hit Iran’s electricity grid in 48 hours.

* Iran’s Revolutionary Guards said if Iranian power plants are attacked, the Strait of Hormuz ⁠will be completely closed and will not be opened until the destroyed power plants are rebuilt.
* Oil prices stayed above $110 a barrel, as investors weighed U.S. and Iranian threats to target energy facilities that could escalate the war against the release of millions of barrels of Iranian oil at sea to global markets.
* The closure of the Strait of Hormuz kept crude ‌elevated, stoking inflation through higher transport and manufacturing costs. While rising inflation typically boosts gold’s appeal as a hedge, high interest rates curb demand for the ⁠non-yielding asset.
* Meanwhile, market pricing for a U.S. Federal Reserve interest rate hike this year has shot up, and is now seen as far more likely than a rate cut, as interest rate futures were pricing around a 27% chance of a rate hike by December, as per the CME FedWatch tool.

* Spot silver lost 3.3% to $65.55 per ounce. Spot platinum fell 4.4% to $1,838.45 and palladium was down 0.4% at $1,398.50.

DATA/EVENTS (GMT)

1500 EU Consumer Confid. Flash March.

“If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!,” Trump said in a social media post published at 23:44 GMT Saturday.

Innovision shares are headed for listing on March 23 with grey market signals indicating a weak debut, as the GMP has slipped into negative territory ahead of listing. The Rs 319 crore IPO, which was priced at Rs 519 per share at the upper end of the band, is currently commanding a negative GMP, implying a potential listing below the issue price if the trend sustains.

The muted GMP comes despite the issue seeing an overall subscription of 3.46 times, driven largely by strong institutional and high net-worth investor participation. The QIB portion was subscribed 14.30 times, while the NII segment saw 8.60 times subscription. In contrast, retail demand remained weak at just 0.60 times, indicating limited broader investor participation.

The negative GMP reflects concerns around valuation and business profile rather than demand visibility. The IPO was a mix of fresh issue worth Rs 255 crore and an offer for sale of Rs 64 crore.

Proceeds from the fresh issue are earmarked for debt repayment, working capital requirements and general corporate purposes.

Innovision operates in manpower services, toll plaza management and skill development, with a diversified presence across 23 states and 5 union territories. However, analysts have flagged that the company operates in a highly competitive and fragmented segment, which could cap valuation upside in the near term.

At the issue price, the company is valued at a post-issue P/E of 30.89x, which is seen as relatively expensive compared to peers, especially given its modest margin profile.
While the company has demonstrated growth in both revenue and profitability over recent years, concerns around pricing and limited retail participation appear to be weighing on near-term listing expectations.That said, grey market trends are unofficial and can change closer to listing. Final listing performance will depend on broader market sentiment, institutional support and overall risk appetite.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)