Gold prices have been highly volatile recently amid the US-Iran conflict. (Pixabay)AI Quick Read
Gold price today: Gold traded lacklustre on the MCX on Wednesday (29 April) morning ahead of the US Federal Reserve's monetary policy decision and Fed chair Jerome Powell's comments on the impact of a US-Iran war on economic growth and inflation.
MCX gold June futures was 0.03% up at ₹1,50,077 per 10 grams around 9:10 am. MCX silver July futures was 0.34% up at ₹2,43,600 per kg at that time.
The US Fed is expected to keep interest rates unchanged on 29 April, as elevated crude oil prices driven by the US-Iran conflict have raised the risk of inflation shooting up, which is already above the central bank's target level.
Stalled US-Iran talks are keeping market sentiment weak. Brent Crude prices stayed above $110 per barrel, supporting the US dollar and weighing on gold prices.
US President Donald Trump claimed on Tuesday that Iran wanted the United States to open the Strait of Hormuz as soon as possible. Meanwhile, Trump is reportedly not happy with Iran’s latest proposals, as they did not address their nuclear program.
"Gold is pressured by stalled US-Iran peace talks and the ongoing closure of the Strait of Hormuz, which has fueled concerns over rising inflation. Investors have increasingly priced in the possibility that central banks may keep interest rates elevated for longer or even tighten further, weighing on non-yielding bullion," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
(This is a developing story. Please check back for fresh updates.)
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