Gold Futures Plunge to Rs 1.5 Lakh/10g Amid Escalating US-Iran Tensions

Gold futures plummeted for the seventh consecutive session on the Multi Commodity Exchange (MCX), hitting Rs 1.5 lakh per 10 grams as escalating US-Iran military tensions drove up oil prices and intensified global concerns over inflation and potential interest rate hikes.

The gold futures for October delivery fell by Rs 1,559 to Rs 1,50,170 per 10 grams, marking the seventh consecutive daily decline. The December contract also plunged by Rs 1,753 to Rs 1,51,540 per 10 grams compared to the previous close of Rs 1,53,293 per 10 grams.

Analysts attributed the decline to renewed military exchanges between the US and Iran, which have driven up oil prices and heightened fears of inflation and interest rate hikes. The recent US airstrikes on Iranian military targets triggered retaliatory action by Tehran targeting American military installations in Bahrain, Kuwait, Jordan, and Iraq, fuelling concerns of a broader conflict.

Market participants are awaiting US employment data for clues on the Federal Reserve's interest rate path, with the FOMC monetary policy decision on September 16 being closely watched. According to Aamir Makda, Commodity & Currency Analyst at Technical Research, Choice Broking, gold futures fell to their lowest level in more than three weeks.