Gold Price Today: The yellow metal price opened lower on Multi Commodity Exchange of India (MCX) today, June 19 as traders weigh in US Federal Reserve's hawkish policy outlook amid easing geopolitical tensions.
At 9:02 am on Friday, the MCX gold July futures contract dipped 1.34% or Rs 1,974 to Rs 1,45,450 per 10 grams, while the MCX silver July futures dropped 2.47% or Rs 5,871 to Rs 2,31,701 per kg.
In the global market, gold was below $4,200 an ounce in early trading, following 1.1% drop on Thursday, The bullion is set for a moderate decline this week, according to data collected by Bloomberg. The precious metal is headed to record a third weekly loss with a hawkish sentiment from Federal Reserve and rate-hike bets that outweighed the signing of a peace deal between the US and Iran. Fed Chairman Kevin Warsh's stance on Wednesday increased bets for a tightening of monetary policy this year, impacting the precious metals that do not pay interest.
Meanwhile, commercial shipping restarted in the Strait of Hormuz after the US announced an end to its blockade, easing fears of supply disruptions.
According to Kotak Securities, ETF outflows, less investor participation are some of the factors that act as headwinds for gold. Additionally, steady physical demand from China, continued purchases by central banks, geopolitical uncertainty and the broader de-dollarisation trend are helping avoid a bigger decline, NDTV Profit earlier reported.
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