Gold Futures Slip for 7th Day, Drop to Rs 1.5 Lakh/10g Amid US-Iran Tensions

New Delhi: Gold futures fell for the seventh consecutive session on Wednesday, falling Rs 1,559 to Rs 1.5 lakh per 10 grams as renewed military exchanges between the US and Iran pushed oil rates higher and heightened concerns over inflation and interest rates.

On the Multi Commodity Exchange (MCX), the yellow metal futures for October delivery declined by Rs 1,559, or 1.03 per cent, to Rs 1,50,170 per 10 grams from Tuesday’s closing level of Rs 1,51,729 per 10 grams.

The December contract also plunged by Rs 1,753, or 1.14 per cent, to Rs 1,51,540 per 10 grams compared to the previous close of Rs 1,53,293 per 10 grams.

Analysts noted that recent US airstrikes on Iranian military targets have triggered retaliatory action by Tehran targeting American military installations in Bahrain, Kuwait, Jordan and Iraq, fuelling concerns of a broader conflict.

“Gold futures fell to their lowest level in more than three weeks, as the escalating conflict in West Asia lifted oil prices and stoked inflation and interest rate-hike fears,” Aamir Makda, Commodity & Currency Analyst, Technical Research, Choice Broking, said.

In global markets, Comex gold futures for the December contract fell for the fourth straight session, slipping by USD 46.46, or 1.06 per cent, to USD 4,349.94 per ounce in New York.

Gold fell more than 1 per cent, falling to a two-week low in overseas trade as renewed military exchanges between the US and Iran pushed oil prices sharply higher and intensified a global sell-off in bullion, said Akshat Siddhant, Lead Quant Analyst at investment platform Mudrex.

Meanwhile, the US Central Command (CENTCOM) forces said it had completed a new wave of strikes against Iranian military targets.

“The strikes follow recent attempted attacks by the Islamic Revolutionary Guard Corps (IRGC) against commercial shipping in the Strait of Hormuz and against American service members,” CENTCOM said in a statement.

Makda said market participants would await US employment data for cues on the Federal Reserve’s interest rate path.

According to analysts, the renewed focus on US economic data comes as investors assess whether the inflationary impact of higher energy prices could influence the Fed’s FOMC monetary policy decision on September 16.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)