New Delhi: Gold futures extended their decline for the seventh consecutive session on Wednesday, September 2, as escalating US-Iran tensions pushed crude oil prices higher and raised concerns over inflation and interest rates.
On the Multi Commodity Exchange (MCX), gold futures for October delivery fell Rs 1,559, or 1.03%, to Rs 1,50,170 per 10 grams. The contract had settled at Rs 1,51,729 in the previous session.
December gold futures dropped Rs 1,753, or 1.14%, to Rs 1,51,540 per 10 grams from Tuesday’s close of Rs 1,53,293.
US-Iran Conflict Weighs on Gold
Fresh military exchanges between the US and Iran have intensified concerns over a wider conflict in West Asia. Recent US strikes on Iranian military targets were followed by retaliatory action from Tehran against American military installations in the region.
Rising geopolitical tensions have driven crude oil prices higher, fuelling worries that expensive energy could add to inflation and keep interest rates elevated.
Gold futures consequently slipped to their lowest level in more than three weeks in the domestic market.
Global Gold Prices Also Decline
International bullion prices remained under pressure. Comex gold futures for December delivery fell for the fourth straight session, declining $46.46, or 1.06%, to $4,349.94 per ounce in New York.
Gold also dropped more than 1% in overseas trade as higher oil prices intensified selling pressure across bullion markets.
Investors will now closely track upcoming US employment data for clues about the Federal Reserve’s interest rate trajectory.
The data assumes greater significance ahead of the US Federal Reserve’s September 16 policy decision, particularly as markets assess the inflationary impact of rising energy prices.
