Gold prices remained steady near $4,490 an ounce as renewed clashes in the Middle East cast doubt over negotiations between the US and Iran to end the ongoing war. On June 3, MCX gold futures for August delivery opened marginally higher at ₹1,59,447 per 10 grams, reflecting cautious sentiment amid geopolitical tensions and inflation worries, according to livemint.com.
The escalation in the US-Iran conflict has pushed crude oil prices higher, intensifying fears that interest rates will remain elevated to control inflation. Despite early losses of up to 0.6% in international gold prices, bullion recovered as President Donald Trump expressed optimism about reaching an interim peace deal with Tehran. However, fresh attacks, including ballistic missile strikes by Iran on Kuwait and Bahrain, have complicated the situation. Another round of talks between Israel and Lebanon is scheduled for June 4, further influencing market dynamics, per livemint.com.
The ongoing conflict has disrupted energy flows, heightening inflation concerns globally and affecting the safe-haven appeal of precious metals like gold. While gold prices in India showed slight gains, the overall weak sentiment in the global bullion market reflects uncertainty over the duration and impact of the conflict. US gold futures for August delivery dropped 0.3% to $4,504.40 an ounce amid these developments, highlighting the complex interplay between geopolitical risks and monetary policy expectations, according to livemint.com.
US gold futures for August delivery stood at $4,504.40 an ounce on June 3, while MCX gold futures in India opened at ₹1,59,447 per 10 grams, marking cautious trading amid ongoing geopolitical tensions and inflation risks, as reported by livemint.com.