Gold prices on Multi Commodity Exchange of India (MCX) opened lower on Wednesday amid escalating tensions between India and Pakistan, and ahead of US Federal Reserve’s monetary policy later today.
MCX gold rate opened lower at ₹96,900 per 10 grams as against its previous close of ₹97,491. At 9:05 AM, MCX gold price was trading lower by ₹841, or 0.86%, at ₹96,650 per 10 grams. Gold prices rallied over 3% in the previous session.
MCX silver price also opened lower and was trading down by ₹251, or 0.26% at ₹96,450 per kg.
Geopolitical tensions between India and Pakistan rose after the Indian Armed Forces conducted ‘Operation Sindoor’, carrying out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir (PoK). As many as nine terror sites were struck in the operation, which were the prime targets.
In the international markets, gold prices retreated as optimism over potential US-China trade talks weakened demand for safe-haven assets.
Spot gold prices were down 1.2% at $3,388.67 an ounce. The metal had risen nearly 3% in the previous session. US gold futures fell 0.7% to $3,397.70.
Investors awaited for the US Federal Reserve’s monetary policy meeting and comments from Fed Chair Jerome Powell on inflation and interest rate cuts later in the day.
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