Gold price today: Gold rate on the MCX dipped on Tuesday, April 7, largely due to profit booking, as the US dollar index remained above the 100 mark, weighing on gold prices.
US President renewed aggression against Iran has kept Brent crude oil prices above $110 a barrel, fuelling demand for the US dollar.
Around 9 am IST on Tuesday, Brent Crude was trading over 1% higher at $111 per barrel.
According to reports, Trump on Monday said during a White House press conference that Iran could be “taken out in one night”, as his final Tuesday deadline to reopen the Strait of Hormuz fast approaches.
MCX gold June futures slipped by ₹350, or 0.20%, to ₹1,49,625 per 10 grams, while MCX silver May contracts declined by nearly ₹1,600, or 0.70%, to ₹2,31,800 per kg in early deals on Tuesday.
Gold and silver rates have seen a significant correction since the war in West Asia began, as rising crude oil prices drove the US dollar higher and raised concerns about inflation, dimming the prospects of near-term rate cuts by the US Federal Reserve.
Every rise in gold prices is followed by some profit booking. In the previous session, the MCX gold June futures contract settled at ₹1,49,981 per 10 grams, gaining 0.20%, and the silver May futures contract settled at ₹2,33,379 per kilogram, rising 0.38%.
“Gold and silver show very high volatility amid uncertainty that persists due to the U.S.-Iran war. The U.S. President’s ultimatum to Iran to end the war will end today, and the market is in fear of the U.S. action against Iran. The dollar index is trading steady near 100 marks and limiting gains of gold and silver,” Manoj Kumar Jain of Prithvifinmart Commodity Research, noted.
“The U.S. job data released on Friday was also better-than-expected as 1,78,000 jobs were created in March against expectations of 65,000 jobs, and the unemployment rate also dropped to 4.3% and limits gains of precious metals. However, some safe-haven buying is supporting both precious metals at lower levels,” Jain said.
(This is a developing story. Please check back for fresh updates.)
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