Gold price today: Gold rate traded volatile amid the dollar's rise ahead of US Fed policy decision. AI Quick ReadGold price today: Gold rate traded volatily in the domestic futures market on Tuesday (28 April) morning as elevated crude oil prices drove the US dollar higher, weighing on the yellow metal.
MCX gold June futures were 0.08% down at ₹1,51,603 per 10 grams, while MCX silver May contracts were 0.45% down at ₹2,40,728 per kg around 9:20 am.
Lingering uncertainty over the stalled peace talks between the United States and Iran is keeping gold prices under pressure.
According to a Reuters report, which quoted a US official, President Donald Trump is not happy with Iran’s latest proposals, as they did not address Tehran's nuclear program.
Iran said it won’t reopen the Strait of Hormuz unless the United States lifts its blockade and ends the war.
Meanwhile, Iran's Foreign Minister Abbas Araghchi expressed satisfaction over his engagement with the Russian leadership on Monday, saying recent events have evidenced the depth and strength of Iran and Russia's strategic partnership.
Brent Crude prices jumped over 1% to $110, driving the dollar index higher.
Higher crude oil prices can drive inflation, forcing central banks to keep interest rates higher for a longer period. High interest rates make yield-bearing assets, such as bonds, more attractive, weighing on the yellow metal's appeal.
The U.S. Federal Reserve is expected to hold interest rates steady on Wednesday, 29 April.
Besides, the Bank of Japan's (BoJ) policy decision is due today, and the European Central Bank and the Bank of England will announce policy decisions on 30 April.
"Gold rates are down as investors assess diplomatic efforts to resolve the US–Iran conflict, which has triggered a major energy supply shock, raising inflation concerns. Investors are also looking ahead to policy decisions from key central banks this week, including the Fed, BoE and ECB," said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
According to Trivedi, MCX gold June contracts may decline to ₹1,51,100 per 10 grams.
(This is a developing story. Please check back for fresh updates.)
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