MCX Gold Prices Plummet Over 1% Amid US-Iran Conflict
Gold and silver prices on the Multi Commodity Exchange (MCX) plummeted over 1% on Wednesday morning, mirroring weak global trends. The MCX gold October futures dropped 1.03% to ₹1,50,164 per 10 grams, while the MCX silver December futures fell 1.26% to ₹2,32,464 per kg around 9:05 AM.
The US gold prices declined to their lowest levels in over three weeks due to an uptick in the US dollar and global bond yields amid escalating US-Iran conflict, higher oil prices, and increased rate-hike fears. Brent crude futures surged more than 1% to trade near $96 per barrel as the US and Iran launched strikes against each other.
Surging bond yields globally weighed on gold's safe-haven appeal. The US 10-year bond yield jumped to 4.82%, Japan’s 10-year bond yield reached 3% for the first time since 1996, and U.K. 10-year government bonds- Gilts- climbed to 5.23%, their highest level since June 2008.