Gold Prices Plummet as US-Iran Tensions Escalate

The price of gold in India has declined sharply in the domestic futures market due to ongoing tensions between the US and Iran over the Strait of Hormuz. The deadlock is keeping energy costs high, which in turn is putting pressure on the Federal Reserve to hike interest rates.

MCX Gold 5 October futures are trading at ₹146,513 per 10 grams, while MCX Silver 4 December contracts are at ₹227,390 per kg. Bullion prices worldwide have also fallen, with gold trading around $4,125 an ounce after tumbling 4% to a seven-week low.

According to a Bloomberg report, Iranian officials privately expressed pessimism about reaching a deal to end hostilities with Washington before the US midterm elections in November.