Following the US Federal Reserve’s decision to raise policy rate by 25 basis points and expectations of further increase, gold weakened since it does not earn any interest and rose again days later as oil prices dropped. The bullion has been experiencing volatility due to fluctuating inflationary pressure and strong dollar. The Fed Reserve is expected to keep the interest rates elevated

Though the tighter monetary policy adopted during the US Fed Reserve meeting against inflation continue to put pressure on bullion, weaker crude worked in support of the precious metal.

Oil supply remained strong despite disruption to Saudi Arabia’s East-West pipeline, easing concerns over energy supply disruptions and lowering oil prices. The prices jumped nearly 3 percent on Thursday, however easing again after reports of potential reopening of the Strait of Hormuz and the US lifting the economic blockade on Iran. 

The current trend in the yellow metal’s rates hints towards high volatility as it is being impacted by inflationary pressure as well as uncertainty over the US-Iran war. 

Meanwhile, reports suggests that the US President Donald Trump rejected Iran’s seven-day peace plan.

On a different note, as the festival season approaches the buying is expected to further support gold rates. Check prices across India:

Delhi 

24K: Rs 15,283/g 

22K: Rs 14,010/g 

18K: Rs 11,466/g 

Mumbai 

24K: Rs 15,268/g 

22K: Rs 13,995/g 

18K: Rs 11,451/g 

Kolkata 

24K: Rs 15,268/g 

22K: Rs 13,995/g 

18K: Rs 11,451/g

Ahmedabad 

24K: Rs 15,273/g 

22K: Rs 14,000/g 

18K: Rs 11,456/g 

Chennai 

24K: Rs 15,273/g 

22K: Rs 14,000/g 

18K: Rs 11,770/g 

Hyderabad 

24K: Rs 15,268/g 

22K: Rs 13,995/g 

18K: Rs 11,451/g

Lucknow 

24K: Rs 15,283/g 

22K: Rs 14,010/g 

18K: Rs 11,466/g  

Patna 

24K: Rs 15,273/g 

22K: Rs 14,000/g 

18K: Rs 11,456/g 

Bangalore 

24K: Rs 15,268/g 

22K: Rs 13,995/g 

18K: Rs 11,451/g

Bhopal 

24K: Rs 15,273/g 

22K: Rs 14,000/g 

18K: Rs 11,456/g 

Pune

24K: Rs 15,268/g 

22K: Rs 13,995/g 

18K: Rs 11,451/g

Thiruvananthapuram

24K: Rs 15,268/g 

22K: Rs 13,995/g 

18K: Rs 11,451/g 

Amritsar

24K: Rs 15,283/g 

22K: Rs 14,010/g 

18K: Rs 11,466/g