Gold Price Today: The yellow metal rate opened flat on India's MCX on Tuesday, May 5, amid renewed tensions between US and Iran.
At 9:02 am on Tuesday, the MCX gold June futures contract marginally rose by 0.15% to Rs 1,49, 550 per 10 grams, while the MCX silver July futures fell 0.12% to Rs 2,43,660 per kg.
Gold traded higher today follwoing hostilities flare-up in the Middle East, which had pushed down prices by 2% on Monday. The metal rose around 0.6% to trade at $4,550 an ounce.
Earlier, US military observed that it had retaliated attacks from Iran as it enabled the passage of two US-flagged vessels thorugh the Strait of Hormuz, a key connectivity route for global supplies, which has been dirsrupted since the conflict began. Further, UAE said it has intercepted cruise missiles fired by the Islamic Republic and accused Iran for a drone strike at Fujaitah port, resulting in fire.
The latest tensions has disturbed the fragile ceasefire that has largely April 8, and raised inflation and rate-hike risks. Oil prices soared on the latest developments, while 30-year Treasury yields advanced to the highest since July, as traders boosted wagers that the Federal Reserve will have to boost interest rates to curb inflation. This is negative for non-yielding bullion.
Gold prices will also remain in focus as the US Treasury Department will detail the borrowing plans for the next three months and along with loaded calendar of economic releases for further clues on the trajectory of rates.
Spot gold was 0.4% up at $4,541.79 an ounce at 11:14 a.m. in Singapore. Silver advanced 0.5% to $73.10. Platinum and palladium also rose, Bloomberg reported.
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