Gold Prices Drop Amid Stalled US-Iran Talks, Rising Oil Prices
Gold and silver prices on MCX declined on August 19 due to rising oil prices amid stalled US-Iran talks, fueling bets for a US Federal Reserve interest rate hike. The dollar index eased to 99.57 from 99.66 in the previous session, capping losses for gold.
MCX gold October futures fell 0.13% to ₹1,54,055 per 10 grams, while MCX silver September futures dropped 1.21% to ₹2,29,600 per kg around 9:35 AM. The Brent Crude oil price benchmark traded near $92 per barrel on Wednesday morning.
The US President Donald Trump stated that no negotiations were underway with Iran and maintained that the Strait of Hormuz remained open, contradicting Tehran's claim that the waterway was still closed to shipping. Iranian Deputy Foreign Minister Kazem Gharibabadi responded by saying that Trump's claims about the Strait of Hormuz would be 'corrected'.
The US Federal Reserve's next policy meeting is scheduled for September 15-16, with markets pricing in a 65% probability of keeping rates unchanged and a 35% chance of a rate hike. Manoj Kumar Jain of Prithvifinmart Commodity Research suggested avoiding fresh buying in gold and silver ahead of the FOMC meeting minutes.