Gold rate today: Comex gold price above $4,530 an ounce amid US-Iran war de-escalation hopes; silver price gains
Gold prices in the international markets traded higher on Thursday, extending gains to a third straight session, amid hopes of de-escalation in the US-Iran war in the Middle East, and trimming bets of a US Federal Reserve rate hike this year.
Spot gold price rose 0.7% to $4,535.17 per ounce, while US gold futures for April delivery declined 0.5% to $4,532.20. Spot silver price rose 0.6% to $71.71 per ounce.
In other commodities, spot platinum prices gained 0.3% to $1,925.05 and palladium price was up 0.1% at $1,424.55.
Iran rejects negotiations
Iran is reviewing a US proposal to end the war in the Gulf, but it has no intention of holding talks to end the war in the Middle East, the country’s foreign minister said on Wednesday.
The US has reportedly sent a 15-point ceasefire proposal to Iran earlier this week. However, Iran has turned down the proposal from, and instead outlined five counter-conditions — including control over the Strait of Hormuz and compensation for war damages.
Meanwhile, the US-Iran war and the effective closure of the Strait of Hormuz, has kept crude oil prices elevated, typically raising inflation fears. Concerns over high inflation have reduced the probability of an interest rate cut by the US Federal Reserve.
Although rising inflation boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding asset. The probability of a Fed rate hike by December has fallen to 18%, down from about 30% in the previous session, according to the CME Group’s FedWatch tool. Prior to the conflict, market expectations pointed to at least two rate cuts this year, Reuters reported.
Gold, Silver Prices in India
Gold and silver prices in India witnessed a sharp rally on Wednesday amid strong buying.
In the previous session, MCX gold rate ended higher by ₹5,188, or 3.73%, at ₹1,44,100 per 10 grams. MCX silver price jumped by ₹10,759, or 4.80%, to close at ₹2,34,700 per kg.
The commodity market will remain closed today, March 26, for the morning session on account of the Ram Navami holiday. Trading in gold and silver on MCX will resume in the evening session at 5 PM.
(With inputs from Reuters)
