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Gold, Silver Prices Drop as US Hormuz Blockade Rattles Markets

Gold and silver prices traded lower on Monday, declining up to 2% on the Multi Commodity Exchange (MCX). The drop followed the US announcement of a blockade of the strategic Strait of Hormuz, escalating West Asia tensions. Global precious metals also fell, with COMEX gold down over 3% and silver dropping more than 5%. The sentiment hit financial markets, with domestic equity benchmarks slumping 2% and the Indian rupee opening weaker.

Key Points: Gold, Silver Prices Fall on US Strait of Hormuz Blockade

  • Gold futures down 0.78% on MCX
  • Silver futures drop 2.5%
  • COMEX gold falls over 3%
  • Equity markets slump 2%
2 min read

Gold, silver trade lower as US Hormuz blockade rattles markets

Gold and silver prices decline up to 2% after US announces Strait of Hormuz blockade, impacting MCX, COMEX, and global markets.

"COMEX gold is currently trading in the $4,700-$4,750 range with limited upside momentum - Analysts"

Mumbai, April 13

Gold and silver prices on Monday traded under pressure, with the precious metals witnessing a decline of up to 2 per cent after the US announced a blockade of the Strait of Hormuz.

On the Multi Commodity Exchange (MCX), gold futures (June 5 contract) declined as much as 0.78 per cent or Rs 1,195 to hit an intraday low of Rs 1,51,457 per 10 gram. Meanwhile, silver futures dropped by Rs 6,084 or 2.5 per cent to Rs 2,37,190 per kg, hitting an intraday low as of 10:14 am.

The yellow metal touched an intraday high of Rs 1,51,999, up Rs 653 or 0.42 per cent, from the previous session's close.

The white metal logged an intraday high of Rs 2,39,068, down Rs 4,206 or 1.72 per cent.

On the global front, precious metals also traded lower. COMEX gold was at $4,626, down 3.37 per cent or $161, while spot gold traded at $4,718.38, lower by $30 or 0.61 per cent.

COMEX silver fell 5.14 per cent or $3.9 to $72.54, while spot silver traded at $74.43, down $1.44 or 1.90 per cent.

Analysts said COMEX gold is currently trading in the $4,700-$4,750 range with limited upside momentum, and a break below $4,650 could trigger further downside toward the $4,600-$4,570 levels. On the upside, resistance is seen around $4,750-$4,770.

MCX gold is hovering in the Rs 1,51,500-Rs 1,52,000 range with subdued buying interest. A sustained move above Rs 1,54,000 may revive momentum, while a break below Rs 1,51,000 could extend weakness toward lower levels.

"In silver, COMEX prices remain below the $75 mark, indicating a weak undertone, with further downside likely if prices slip below $72. MCX silver is trading near Rs 2,38,000, with resistance around Rs 2,40,000 and support seen at Rs 2,37,000," they added.

Sentiment among traders and investors hit by a fresh escalation in the West Asia conflict after the US and Iran failed to make progress in peace talks.

US President Donald Trump on Sunday announced a blockade of the Strait of Hormuz.

Domestic equity benchmarks Sensex and Nifty slumped 2 per cent in early trade, while major Asian indices declined up to 1 per cent.

Meanwhile, the Indian rupee opened 55 paise lower on Monday. The domestic currency began the session at 93.28 against the US dollar.

- IANS

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Reader Comments

S
Sarah B
Watching from the US, but this affects my family in Mumbai. The blockade of Hormuz is a major escalation. It's not just about gold prices; it's about oil supply and everything that follows. The rupee falling 55 paise is a big worry. 😟
A
Ananya R
Silver down 2.5%! I was planning to buy some jewellery for my sister's wedding next month. Might be a good time to visit the jeweller this week if the price stays low. Hope the situation doesn't get worse.
V
Vikram M
The analysts' ranges are helpful, but these geopolitical shocks make technical analysis less reliable. The real driver now is Trump's next move. Our markets (Sensex down 2%) are reacting to fear, not fundamentals. Stay cautious, don't panic sell.
K
Karthik V
With respect, the article focuses heavily on short-term price movements. For the average Indian investor, the bigger question is asset allocation. In times like these, a balanced portfolio with some gold ETFs can be a lifesaver. Don't put all your eggs in one basket.
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Priya S
It's so stressful! My husband and I are saving to buy a house, and we put some savings in a gold fund. Now seeing it drop with the news... feels like we can't win. Everything is connected to problems far away from us. 😔

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