𝗚𝗼𝗹𝗱 𝗮𝗻𝗱 𝗦𝗶𝗹𝘃𝗲𝗿 𝗣𝗿𝗶𝗰𝗲𝘀 𝗗𝗿𝗼𝗽 𝗢𝘃𝗲𝗿 𝟭% 𝗮𝘀 𝗨𝗦-𝗜𝗿𝗮𝗻 𝗧𝗲𝗻𝘀𝗶𝗼𝗻𝘀 𝗥𝗶𝘀𝗲
Gold prices fell more than 1% on Wednesday. Spot gold dropped 1.4% to $4,203.20 per ounce. US gold futures for August delivery also fell 1.4% to $4,227 per ounce. The metal hit its lowest level since March 23 on Tuesday.
- Silver prices declined 1.4% to $64.48 per ounce
- Platinum fell 1.5% to $1,700.38
- Palladium slipped 0.8% to $1,212.67
Crude oil prices rose about 1%. The United States launched strikes on Iran on Tuesday. President Donald Trump said Iran shot down a US Apache helicopter near the Strait of Hormuz. The strikes ended hopes for a peace deal and strained a fragile ceasefire.
Higher oil prices raised fears about inflation. This would keep interest rates elevated for a longer time. A stronger US dollar also added pressure. Gold does not pay interest, so higher rates make it less attractive.
In India, gold of 99.9% purity rose Rs 1,500 to Rs 1,60,300 per 10 grams on Tuesday. This was up from Rs 1,58,800 on Monday.
- India faces a rise in gold smuggling after higher import duties
- Experts estimate illicit gold inflows will pass 100 metric tonnes this year
- Smugglers now sell gold below bank and refiner prices
Investors now wait for US inflation data. The Consumer Price Index report comes out on Wednesday. The Producer Price Index data follows on Thursday. These reports will hint at the Federal Reserve's next steps.