Gold down 3.4% amid U.S.-Iran tensions and oil price rise
Business
Gold prices just saw their biggest weekly drop in six weeks, down 3.4%, thanks to rising U.S.-Iran tensions and higher oil prices, which have everyone worried about inflation.
With the US Fed likely to keep interest rates high, both gold and silver slipped 1.5% on India's MCX exchange, though a weaker rupee cushioned the fall a bit.
Gold ETFs attracted ₹3,443 cr
The price drop has actually boosted gold demand (Kumari Fine Jewellery noticed a nearly 25% jump in customer interest this July).
Gold ETFs also attracted ₹3,443 crore in June after outflows in the previous month (May), since many see gold as a safe bet when markets get shaky.
Meanwhile, silver took an even bigger hit with an almost 7% drop globally, as investors played it safe and moved away from riskier assets.