- Gold prices dropped 0.41% to Rs 1,43,742 per 10 grams on March 30
- Silver futures fell 0.27% to Rs 2,27,343 per kg on the same day
- Gold closed 0.04% lower at Rs 1,44,401 on Friday
Gold Price Today: The yellow metal rate dropped on Monday, March 30, as the US-Iran conflict enters its fifth week with no clear signs of de-escalation.
At 9 am on Monday, the MCX gold April futures contract fell 0.41% or Rs 597 to Rs 1,43,742 per 10 grams, while the MCX silver May futures dropped 0.27% or 611 to Rs 2,27,343 per kg.
On Friday, the MCX gold April futures closed 0.04% down to Rs 1,44,401 per 10 grams, while the MCX silver May futures ended 0.09% lower to Rs 2,27,750 per kg.
In the global markets, the bullion dropped, wiping off its first weekly gain since the war in the Middle East began with the Iran-backed Houthi group joined the conflict, while more US military has been deployed into the region. Gold fell around 1.7% in early trading, Bloomberg reported.
ALSO READ: Rupee Surges Over 1% Against US Dollar After RBI's FX Rule
As mediators such as Pakistan, Turkey, Egypt, and Saudi Arabia held discussions to end the conflict, Iran targeted aluminium smelters in Bahrain, the United Arab Emirates (UAE), and parts of Tehran lost electricity supply after missile strikes.
Ever since the war started, the yellow metal has tanked more than 15%, while losing its appeal as a haven asset and aligning with the movement of stocks, reflecting an inverse relationship with oil, the report said.
Heightened central bank purchases have been a key factor for gold's rally over the last few years. However, Turkey reversed this trend during the first two weeks of the war as it sold and swapped 60 tons of bullion costing over $8 billion.
Several countries that have bought the precious metal are also energy importers; hence the surge in oil prices will result in fewer dollars to accumulate gold.
The hiked energy prices have also raised concerns over the US Federal Reserve and other central banks to hold interest rates or raise them, which is a headwind for the non-yielding yellow metal.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
