Gold Prices Tumble Amid Tensions in Strait of Hormuz

Gold prices dropped by Rs 1,162 to Rs 1.51 lakh per 10 grams due to a strong dollar and geopolitical tensions in the Strait of Hormuz. Failed US-Iran talks have fueled concerns about an energy crisis, influencing commodities markets and impacting global inflation and interest-rate outlooks.

Gold prices faced a significant decline of Rs 1,162 to Rs 1.51 lakh per 10 grams in futures trading as the dollar gained strength. This drop coincides with the US's plans to blockade the Strait of Hormuz following unsuccessful truce discussions with Iran over the weekend, raising global energy crisis concerns.

The Multi Commodity Exchange saw gold for June delivery fall by nearly 1 percent in a turnover of 7,739 lots. Gaurav Garg from Lemonn Markets Desk highlighted the pressure from a stronger dollar and ongoing geopolitical tensions in West Asia, causing caution among investors.

In the overseas market, New York's Comex gold futures for June dropped by USD 51.40. With the US military initiating a blockade of Iranian ports and shores, supply disruptions loom, possibly affecting inflation and delaying interest-rate cuts, said Jigar Trivedi of IndusInd Securities.

(With inputs from agencies.)