New Delhi, May 26 -- Gold rate dropped on the MCX on Tuesday, 26 May, morning due to profit booking as persisting uncertainty and doubts over a potential US-Iran deal keep oil prices up, stoking inflation fears and raising the possibility of interest rate hikes in the near future.

MCX gold June futures were 0.30% down at Rs.1,59,320 per 10 grams, while MCX silver July futures were 1.14% down at Rs.2,73,970 per kg around 9:19 am.

The dollar index rose by nearly 0.07%, making greenback-denominated bullion expensive for buyers in other currencies, as crude oil prices rose by more than 0.63%. The benchmark Brent crude touched $97.865 per barrel. Reports suggested that the US has conducted 'self-defence strikes' in Iran as Trump pushes for a...