Gold price today: Gold rates declined in the domestic futures market in intraday trade on Friday (June 20), even as tensions between Israel and Iran escalated further, and the US dollar declined after the Chair hawkish tone. August 5 contracts traded 0.56 per cent lower at ₹98,777 per 10 grams around 4:45 PM.
The has entered the second week, with both countries bombing each other. According to a Reuters report, Israeli Prime Minister said on Thursday that while Israel’s military actions are not aimed at toppling Iran’s leadership, such an outcome could be a consequence of the ongoing conflict.
According to media reports, Israel bombed nuclear targets in Iran on Thursday, and Iranian missiles hit an Israeli hospital overnight. The Iranian Revolutionary Guard Corps (IRGC) has vowed to intensify attacks against Israel.
Fears are mounting that tensions between the two countries could escalate into a major crisis, with the active involvement of the US and other countries.
Meanwhile, White House Press Secretary Karoline Leavitt on Thursday (June 19) said President ., will decide on the US role in the Iran-Israel conflict within two weeks.
While global uncertainty is positive for gold prices, waning hopes of rate cuts from the US Federal Reserve seem to be weighing on gold prices.
Fed Chair Powell said inflation may rise over the summer as the impact of President Trump’s tariffs reaches US consumers.
Hawkish tone of the Fed dragged the dollar index by nearly 0.40 per cent on June 19.
“Gold prices remain sluggish, as concerns over potential high inflation signalled by the US Federal Reserve have overshadowed the safe-haven demand typically expected during geopolitical tensions like the ongoing Middle East crisis,” Aksha Kamboj, Vice President, India Bullion and Jewellers Association and Executive Chairperson, Aspect Global Ventures, observed.