Gold and silver prices fell on the Multi Commodity Exchange as the US dollar strengthened and tensions between the United States and Iran intensified. MCX gold August futures dropped 0.50% to ₹1,42,547 per ten grams, while silver September contracts declined 0.40% to ₹2,19,117 per kilogram. The fall followed profit‑taking after recent gains when the Federal Reserve kept interest rates steady.
The dollar index rose 0.40%, making gold costlier for overseas buyers. Brent crude hovered near 88 dollars per barrel as Middle East conflict pushed oil prices higher. Geopolitical tensions escalated after missile strikes and counter‑attacks. Jordan intercepted Iranian missiles, while the United States carried out heavy strikes. Egypt and Saudi Arabia were increasingly drawn into the conflict, raising concerns about wider instability.
US inflation eased in June, but rising energy costs may push prices higher again. The PCE Price Index fell 0.1% month on month, its weakest reading since April 2020. Consumer inflation slowed to 3.5% in June from 4.2% in May. The Federal Reserve kept rates unchanged, though some members favoured hikes.