Gold prices on the Multi Commodity Exchange (MCX) in India fell below ₹1.55 lakh per 10 grams on Tuesday, with August futures opening at ₹1,54,397, down 0.25% from the previous close of ₹1,54,784. Silver prices also slipped by 1%, reflecting a weak trend in global bullion markets as investors reacted to developments in the Middle East conflict, according to livemint.com.
The price movement followed a fragile ceasefire agreement between Israel and Iran to end missile strikes, which had threatened to derail peace talks in the region. The ceasefire came after US President Donald Trump called for de-escalation to resolve the ongoing war that has lasted four months. Bullion prices steadied near $4,325 an ounce in early trading, with the conflict having disrupted energy flows through the Strait of Hormuz and driven oil prices higher, per livemint.com.
The war in the Middle East has heightened concerns about global inflation and the likelihood of central banks maintaining or raising interest rates, which typically weigh on precious metals. The initial outbreak of the conflict caused a sharp fall in bullion prices, but the recent ceasefire has led to stabilization. The gold price decline in India mirrors the cautious sentiment among investors globally as they assess geopolitical risks and inflationary pressures, according to livemint.com.
MCX gold futures for August delivery opened at ₹1,54,397 per 10 grams on Tuesday, reflecting the market's response to the ceasefire and broader economic factors. Silver prices also declined by 1% on the MCX, underscoring the cautious stance of investors amid ongoing uncertainty in the Middle East, as reported by livemint.com.