Gold Prices Plummet Amid US-Iran Conflict and Stronger Dollar
Gold and silver prices plummeted in domestic markets on September 29 due to concerns over energy costs, inflation, and US interest rates amidst the ongoing US-Iran conflict. The Multi Commodity Exchange (MCX) reported gold futures for October 5 trading at ₹146,513 per 10 grams, while silver contracts for December 4 stood at ₹227,390 per kg.
The international market saw gold trading near $4,125 an ounce after a 4% decline in the previous session to a seven-week low. This fall was attributed to a stronger US dollar and higher bond yields, making gold relatively less attractive when interest rates rise.
As investors closely watch developments around the Strait of Hormuz, any prolonged disruption to energy supplies could keep crude prices elevated and add to inflationary pressures. Retail bullion prices in India varied across major cities on September 29, with 24-karat gold quoted at ₹147,250 per 10 grams in Mumbai and ₹146,990 per 10 grams in New Delhi.
Jewellery prices may differ from bullion rates due to GST, making charges, and other applicable costs added to the final purchase price. The ongoing US-Iran conflict has added another layer of uncertainty to global markets, influencing expectations about US monetary policy.