Gold Price Today: The yellow metal rate dropped on Multi Commodity Exchange of India (MCX) today, June 18 after US-Iran sign peace deal and Federal Reserve keeps interest rate unchanged.
At 9:17 am on Thursday, the MCX gold July futures contract fell 0.75% to Rs 1,50,610 per 10 grams, while the MCX silver July futures dropped 2% to Rs 2,46,774 per kg.
In the global market, gold rate rose driven by the signing of an interim peace deal between the US and Iran, despite the Federal Reserve hinted at a rate hike later in the year. The precious metal traded near $4,295 an ounce after a 1.7% dip in the previous session, according to data collected by Bloomberg.
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US President Donald Trump signed the peace deal while dining with French President Emmanuel Macron at the Palace of Versailles, on the sidelines of the G7 summit in France. Iranian President Masoud Pezeshkian signed for Iran's side.
The agreement is expected to ease a global energy shock that has raised inflation concerns and rate hike bets. Despite the agreement, uncertainty looms over how quickly fuel prices can come down and when transits through the Strait of Hormuz can be back to pre-war levels.
On Wednesday, the US Federal Reserve kept interest rates unchanged, suggesting it would deliver price stability. The central bank also hinted at tightening of monetary policy by October. Higher interest rates are a headwind for precious metals, which don't pay interest.
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