Gold and silver prices saw a sharp decline on Monday, 20 April, following fresh geopolitical tensions in the Strait of Hormuz over the weekend. Attacks on ships have raised concerns about energy supply disruptions and inflation, especially amid more than seven weeks of conflict in the region.
Market Movement And Global Trends
Gold and silver prices dropped by up to 2.5% on Monday. COMEX gold rate fell 2% to $4,780 per ounce, reversing last week’s 1.7% gain. COMEX silver rate declined 2.5% to $78.75 per ounce during Asian trading hours. Since the start of the US-Iran conflict in late February, gold is down around 9% and silver has fallen around 14%
Retail buyers should note that final gold prices may be higher due to making charges, GST, and taxes added by jewellers.
Gold Prices In Major Indian Cities – 20 April
Mumbai
24 karat gold — ₹152,960/10 gm
22 karat gold — ₹140,213/10 gm
Silver 999 Fine — ₹253,060/1 kg
Delhi
24 karat gold — ₹152,700/10 gm
22 karat gold — ₹139,975/10 gm
Silver 999 Fine — ₹252,620/1 kg
Ahmedabad
24 karat gold — ₹153,250/10 gm
22 karat gold — ₹140,479/10 gm
Silver 999 Fine — ₹253,430/1 kg
Bengaluru
24 karat gold — ₹153,160/10 gm
22 karat gold — ₹140,379/10 gm
Silver 999 Fine — ₹253,290/1 kg
Kolkata
24 karat gold — ₹152,840/10 gm
22 karat gold — ₹140,103/10 gm
Silver 999 Fine — ₹252,760/1 kg
Hyderabad
24 karat gold — ₹153,280/10 gm
22 karat gold — ₹140,507/10 gm
Silver 999 Fine — ₹253,490/1 kg
Chennai
24 karat gold — ₹153,490/10 gm
22 karat gold — ₹140,699/10 gm
Silver 999 Fine — ₹253,830/1 kg
What’s Driving The Price Drop?
Fresh geopolitical tensions appear to be the key factor behind the recent fall in gold and silver prices. According to Bloomberg, Donald Trump stated that the United States Navy fired on and seized an Iranian-flagged cargo vessel. This development has further escalated concerns in an already sensitive region.
At the same time, Iran issued a warning that ships approaching the Strait of Hormuz could be seen as violating the ceasefire. Despite Tehran earlier declaring the route open, several vessels reportedly turned back, adding to uncertainty over the safety of one of the world’s most critical shipping lanes.
Impact On Markets
The rising tensions have had a direct impact on global financial markets. Dow futures in the United States dropped by around 400 points, reflecting investor nervousness amid the escalating US-Israel conflict with Iran.
Meanwhile, uncertainty surrounding potential peace talks in Islamabad continues to weigh heavily on market sentiment. With no clear progress towards de-escalation, investors are closely watching developments.
Experts believe commodity prices, especially gold and silver, are likely to remain volatile in the near term, as markets react to every new update from the region.
