Gold Price Today: MCX Rate Flat As US-Iran Ceasefire Remains On Edge, Fed Decision Awaited

Gold Price Today: The yellow metal rate continued to remain flat on India's MCX on Wednesday, April 29, amid ongoing US-Iran War linked geopolitical uncertainties  and ahead of Federal Reserve key policy decision.

At 9:01 am on Wednesday, the MCX gold May futures contract rose marginally by 0.08% to Rs 1,48,649 per 10 grams, while the MCX silver May futures rose 0.52% to Rs 2,38,578 per kg.

Gold remained steady globally following a two-day drop as investors eye possibilty of ceasefire talks between the US and Iran, with the indefinite closure of the Strait of Hormuz, which continued to raise inflation risks. The precious metal traded around  $4,590 an ounce, after falling 2.4% in the previous two sessions to the lowest in almost four weeks. 

US President Donald Trump claimed Tehran has asked Washington to lift its Strait of Hormuz blockade, amid possibility of the two sides negotiating to end the two-month war, which has disrupted global energy supplies. Mediators in Pakistan expect Iran will submit a revised proposal in the next few days, CNN reported.

Traders are also paying attention to interest rate decisions in the US, the European Union, the UK and Canada in coming days. The Bank of Japan on Tuesday left its benchmark rate unchanged 0.75%, with a split vote suggested of possibily of a hike in June. Meanwhile, Federal Reserve is majorly expected to keep interest rates unchanged in its meeting that ends of Wednesday, Bloomberg reported, while also focsuing on whether Jerome Powell will remain at the board after his term as chair ends. 

Inflation risks have been heightened by the energy supply disruptions as it raises the likelihood that central banks will hold interest rates for longer or even hike them, which is a headwind for non-yielding bullion.

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