Gold Prices Tumble as Interest Rates Rise Amid Escalating Middle East Conflict

Gold prices fell for the second consecutive day on Wednesday, while silver rose to Rs 2.39 lakh/kg ahead of key US data.

The Multi-Commodity Exchange saw gold futures for October 2026 delivery decline by Rs 500 to Rs 1,52,101 per 10 grams, while MCX silver futures for September 2026 delivery dropped by Rs 400 to Rs 2,39,081 per kg.

Investors are awaiting US producer price index data due on Thursday and consumer price index data on Friday. The conflict in the Middle East also intensified with Iranian-backed Houthis launching strikes on several Saudi cities.

Brent crude prices rose for a fourth consecutive session, which generally adds to inflationary pressure as increased energy costs feed into the wider economy.