US-Iran Tensions Weigh on Gold Prices as Rate Hike Fears Intensify

Gold and silver prices fell on the Multi-Commodity Exchange (MCX) 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 per cent. Silver futures also declined, with the December contract quoted at Rs 2,40,400 per kg, down Rs 1,203, or 0.50 per cent.

The conflict in Yemen has 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.

Expectations of further monetary tightening in the US also weighed on bullion prices. The US Federal Reserve raised interest rates by 25 basis points last week, taking the benchmark rate to a range of 3.75 to 4 per cent.