US-Iran Tensions Weigh on Gold and Silver Prices as Rate Hike Fears Linger
Gold and silver prices on the Multi-Commodity Exchange (MCX) fell on September 21 due to fresh US-Iran tensions, inflation concerns, and rate hike fears. The October gold futures contract was trading at Rs 1,53,494 per 10 grams, down Rs 887, or 0.57 percent. This decline comes after a recent rally in bullion prices.
Ajit Mishra, senior vice president of research at Religare Broking, attributed the fall to profit-taking and renewed concerns over US monetary policy. 'After last week’s rally, gold and silver are witnessing some profit-taking as higher US Treasury yields, a firmer dollar, and expectations of further Fed tightening weigh on sentiment,' he said.
The recent tensions in Yemen have added to concerns over the wider confrontation involving the US and Iran. Houthi forces have been advancing in Yemen and have taken positions near the Bab el-Mandeb Strait, a strategically important shipping route.