Gold Price Today: The yellow metal rate dropped on MCX today, May 20 as US and Iran tensions continue.
At 9 am on Wednesday, the MCX gold June futures contract fell 0.59% to Rs 1,57, 495 per 10 grams, while the MCX silver July futures dipped 0.67% to Rs 2,68,314 per kg.
On Tuesday, the MCX gold closed 0.04% down at Rs 1,58,362 per 10 grams, while the MCX silver May futures ended 0.11% higher at Rs 2,70,407 per kg.
Globally, gold continued to drop as a lack of progress in reopening the Strait of Hormuz continued to raise concerns over inflation and increase bets that global central banks may hike interest rates. Bullion was trading around $4,480 an ounce, after falling almost 2% on Tuesday.
US President Donald Trump threatened to resume strikes on Iran in the coming days after earlier saying he had called off an attack. The ongoing conflict, which is in its third month has elevated energy prices, raising inflation fears and the risk that the Federal Reserve and other central banks may need to keep rates high. Investors had expected rate cuts before the US and Israel launched their war on Iran, Bloomberg reported. Low interest rates benefit gold, which does not carry interest.
Gold has remained in a narrow range after falling significantly after the conflict began, with the bullion dropping 15% since February 28.
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