New Delhi, Jul 8: Gold futures slumped by Rs 2,308 to Rs 1.43 lakh per 10 grams on Wednesday, tracking losses in global markets as a rally in crude oil rates dented the appeal of the precious metal amid escalating tensions in West Asia.
On the Multi Commodity Exchange, the yellow metal for August delivery declined by Rs 2,308, or 1.59 per cent, to Rs 1,43,084 per 10 grams in a business turnover of 10,440 lots.
Global factors weigh on gold
Traders said rising crude oil prices following fresh hostilities in West Asia stoked inflation concerns, strengthening the US dollar and prompting investors to trim exposure to precious metals.
"Gold prices traded lower in the domestic markets on Wednesday amid renewed geopolitical tensions in the Middle East, and concerns over potential supply disruptions through the Strait of Hormuz boosted oil prices and strengthened the US dollar," Gaurav Garg, Research Analyst at Lemonn Markets Desk, said.
Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking, said, "Gold prices extended losses for the third consecutive session as concerns around inflation and higher interest rates rose after fresh US strikes on Iran lifted oil prices".
International market trends
In the international markets, Comex gold futures for August delivery fell USD 94.69, or 2.28 per cent, to USD 4,062.71 per ounce in New York.
Gold prices fell in overseas trade as investors remained cautious ahead of the release of the US Federal Reserve's June meeting minutes, which are expected to provide further clarity on the interest rate outlook, Garg said.
He added that although weaker US macroeconomic data have supported expectations of future interest rate cuts by the Federal Reserve, a firm dollar and profit-booking have kept precious metals under pressure.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
