Gold Falls to Three-Week Low Amid US-Iran Tensions
Gold futures on the Multi Commodity Exchange (MCX) plummeted to ₹1.5 lakh per 10 grams, marking a seventh consecutive decline, amidst escalating tensions between the US and Iran.
The October delivery contract fell by ₹1,559, or 1.03%, to ₹1,50,170 per 10 grams from Tuesday's closing level of ₹1,51,729 per 10 grams.
Analysts pointed out that recent US airstrikes on Iranian military targets have triggered retaliatory action by Tehran targeting American military installations in Bahrain, Kuwait, Jordan, and Iraq, fueling concerns of a broader conflict.
Aamir Makda, Commodity & Currency Analyst at Choice Broking, noted that gold futures fell to their lowest level in more than three weeks due to the escalating conflict in West Asia lifting oil prices and stoking inflation and interest rate-hike fears.