Gold Price Today: The yellow metal opened higher on MCX today, June 2 amid ongoing uncertainties linked to US-Iran conflict.
At 9 am on Tuesday, the MCX gold June futures contract rose 0.12% to Rs 1,54,845 per 10 grams, while the MCX silver July futures was 0.03% up at Rs 2,66,248 per kg.
In the global market, gold continued to drop following uncertain hints from the US and Iran over a diplomatic resolution to the war, raising concerns over inflation and continued trade disruptions. The precious metal traded near $4,490 an ounce after a a dip of more than 1% in the previous session. Amid renewed clashes near the Strait of Hormuz, US President Donald Trump said talks with Iran were continuing “at a rapid pace,” in contrast to earlier threats from Tehran to suspend talks and close the key waterway completely.
Additionally, both Trump and Israel's Prime Minister Benjamin Netanhayu gave different accounts about fighting in Lebanon, raising further uncertainty around talks to end the three month old conflict that has led to a global energy crisis.
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Since the conflict began in late February, gold fell significantly and remains about 15% below its immediate pre-war level, though has traded in a narrow range for the last few weeks.
Any energy and trade traffic flow through Hormuz is expected to ease concerns around global inflation, raising the possibility of more central banks loosening monetary policy. Lower borrowing costs are a tailwind for gold, the bullion which doesn't pay interest.
However, Federal Reserve is expected to not cut rates to stimulate consumption after US manufacturing activity expanded in May at the fastest pace in four years, the fifth straight month of growth, Bloomberg News reported.
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