Gold and silver prices dropped on Monday after ceasefire talks between the US and Iran failed and President Donald Trump announced a blockade of the Strait of Hormuz. The drop saw Indians rushing to book gold ahead of the auspicious Akshaya Tritiya on April 19 and for the upcoming wedding season that runs through early August.
Gold slid nearly 1% and silver was down 2.5%.
“The fall in prices has encouraged consumers to step in and make advance bookings,” said Suvankar Sen, managing director of Senco Gold, adding that demand momentum is picking up across key markets.
Silver prices touched a low of ₹2,37,190 per kg, a drop of ₹6,084 or 2.50% on the Multi Commodity Exchange, while gold prices fell 0.72% to ₹1,51,547 per 10 gram.
Gold and silver were under pressure at the start of this week, reversing last week’s gains. The trigger is a sharp escalation in the US-Iran standoff – with Washington announcing plans to blockade the Strait of Hormuz following the collapse of weekend peace talks in Pakistan.
“The move has reignited global energy crisis fears and pushed safe-haven demand into a conflicted zone: while geopolitical risk remains high, rising energy-driven inflation and the prospect of tighter monetary policy are creating headwinds for non-yielding assets like gold and silver,” said Renisha Chainani, head of research at Augmont Gold.
