US-Iran Conflict Weighs on Gold Prices Amid Rising Oil Costs
The escalating tensions in West Asia are putting pressure on global stock markets, but gold and silver prices are not responding as expected. Typically, precious metals rise during geopolitical turmoil due to their safe-haven status. However, this time they remain volatile despite the ongoing US-Iran conflict.
Rising crude oil prices and concerns about inflation are strengthening expectations of a tighter monetary policy in the US, which is weighing on gold prices. In India, 24K gold is trading around Rs 15,458 per gram, while 22K and 18K gold are priced at around Rs 14,015 and Rs 11,594 per gram, respectively.
According to Ajay Kedia, a commodity expert, 'Rising oil prices amid escalating US-Iran strikes in the Middle East further strengthened inflation concerns, with markets pricing more than 70% probability of a Federal Reserve rate hike on September 16.'