Gold price today: Gold prices have fallen by 20% since the start of the war
Gold has fallen by about 20% since the outbreak of the US-Israeli conflict with Iran in late February. The disruption to traffic through the Strait of Hormuz had previously pushed energy prices sharply higher, stoking concerns about inflation and boosting expectations that interest rates would remain high for an extended period.
Gold price today: Low expectations for raising interest rates
Although gold is often seen as an insurance against inflation, high borrowing costs usually reduce its appeal because the metal does not generate income.
Expectations for a US interest rate increase also declined in December. Data from the CME FedWatch tool showed that traders now assign a 47% probability of a rate hike, compared to 69% the previous week.
Silver price today: Spot gold rises by 3%
Among other precious metals, silver in spot transactions jumped 3.1% to $70.07 per ounce, platinum rose 3.1% to $1,771.27, and palladium gained 3.3% to $1,325.76.
Gold price today: Spot gold rises by more than 2%
Gold prices rose 2% on Monday after officials from the United States and Iran announced that they had reached a tentative understanding aimed at ending hostilities between the two countries.
This development led to a decline in oil prices and reduced concerns about continued inflation and high interest rates.
By 0122 GMT, gold in spot transactions rose 2 percent to $4,304.11 per ounce, recording its highest levels since June 9. US gold futures for August settlement also rose 2 percent to trade at $4,325.20.
Gold price today: Gold price forecast
“The gold price may consolidate in the near term, amid mixed macro signals, while some pressures may build on expectations of interest rate hikes, a stronger dollar, and rising bond yields. Geopolitical developments are likely to be around ±5% in the short term, particularly around the US-Iran conflict. For Indian investors, a lower rupee should mitigate the downside, keeping domestic gold prices in a narrower range versus international markets. The medium and long-term outlook remains bullish due to supporting structural and cyclical fundamentals,” the fund says. “Investors may look to pile into any price decline,” Tata shared in his latest forecast.
Live updates of gold and silver price today: Analysts believe that developments surrounding the US-Iran agreement will continue to have a major impact on bullion markets. Experts said that markets will be closely watching whether the agreement will be officially signed. Experts say a successful conclusion could support a broader rally across riskier assets and possibly benefit gold and silver as well, while any deterioration in the situation could hurt market sentiment.
In the domestic market, MCX gold futures for August delivery ended last week lower by Rs 5,066, or 3.2%, to settle near Rs 1.50 lakh per 10 gram. Silver futures for July delivery also weakened, falling by Rs 2,351, or nearly 1%, to about Rs 2.46 lakh per kg. Gold prices came under significant pressure during the week, falling more than 3% and briefly testing Rs 1.48 lakh per 10 gram on the MSX.
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