Gold, Silver Price Today: Both gold and silver rates fell on Multi Commodity Exchange of India (MCX) today, June 23 amid strong dollar and US Federal Reserve's stance amid optimism over US-Iran peace talks.
At 9:45 am on Tuesday, the MCX gold July futures contract dropped 0.89% or Rs 1,300 to Rs 1,44,825 per 10 grams, while the MCX silver July futures dipped 2.59% or Rs 6,075 to Rs 2,28,235 per kg.
Gold price dropped globally as concerns of inflation outweighed hopes around talks to resolve the US-Iran war. Bullion fell as much as 1.2% to around $4,140 an ounce.
Federal Reserve Bank of Chicago President Austan Goolsbee on Monday raised concerns over inflation and questioned if all the factors pushing prices higher were temporary. “We've been dealing with an inflation problem that's well above the target and has been going the wrong way,” he said in an interview on American Public Media's Marketplace radio program.
In addition to inflation, new Fed Chair Kevin Warsh's hawkish stance, heightened the likelihood of rate hike, which is a headwind for precious metals, which don't pay interest. This has offset the positive impact from an interim US-Iran peace deal signed last week.
According to data collected by Bloomberg, the US dollar climed more than 1% since the US Fed's last meeting, imapcting the prices of precious metal that's priced in the American currency.
Since the war began by the end February, gold has dipped a fifth, while silver has fallen more than 30%.
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