Gold Prices Plummet in India Amid US-Iran Conflict and Fed Rate Hike Fears
The price of gold in India's retail market declined on September 2 amid ongoing uncertainty over the US-Iran conflict and fears of a Fed rate hike. Spot gold fell 0.6% to $4,304.01 per ounce, its lowest since August 7.
The US launched airstrikes against Iran on Tuesday, prompting Iranian retaliation. The escalation lifted oil prices and stoked inflation, which contributed to the decline in gold prices. Oil prices rose for a third straight session, while US Treasury yields advanced.
In India, both 24-karat and 22-karat gold rates showed a marginal decline across major cities. Silver prices also declined in the domestic bullion market. MCX gold rate was trading 1.07% lower at ₹150,530 per 10 grams, while MCX silver futures were trading about 1.26% lower at ₹231,830 per kg.