Gold is trading cautiously after renewed military exchanges between the United States and Iran revived concerns about inflation and raised expectations that the US Federal Reserve could keep interest rates high for longer. Although geopolitical tensions traditionally support safe haven assets, the prospect of tighter monetary policy and a stronger US dollar has continued to limit bullion’s gains.
Internationally, spot gold remains near $4,122 an ounce but remains on track for a weekly loss of more than 1%. Investors are closely watching the latest policy signals from the Federal Reserve after minutes from its June meeting indicated that several policymakers remain concerned about high inflation. Markets have raised the likelihood of an interest rate hike in September following the recent escalation in the Middle East, while upcoming US economic data will provide further direction for monetary policy.
At home, domestic bullion prices have remained under pressure. Gold fell for the fourth consecutive session on Thursday, while silver recorded another sharp decline, as a stronger rupee reduced the cost of imported bullion and weak local demand weighed on prices. The divergence between domestic and international markets has become a key issue, with currency movements playing a major role in determining Indian bullion prices.
Throughout the day, this live blog will follow all the important developments affecting precious metals, including MCX and international gold prices, silver rates, US dollar movements, Treasury yields, Federal Reserve comments, geopolitical developments, central bank buying, physical demand trends, and expert opinions on the market.
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