Gold and Silver Prices Drop Amid US Hormuz Blockade Concerns
Synopsis
On April 13, gold and silver prices experienced significant declines of up to 2% due to geopolitical tensions following the US blockade of the Strait of Hormuz. This market shift is indicative of broader investor sentiment amid escalating conflicts.
Key Takeaways
Gold and silver prices dropped up to 2%.
US announced a blockade of the Strait of Hormuz.
MCX gold futures fell to Rs 1,51,457 per 10 grams.
MCX silver futures decreased to Rs 2,37,190 per kg.
Global markets are reacting to geopolitical tensions.
Mumbai, April 13 (NationPress) The prices of gold and silver faced downward pressure on Monday, experiencing a decrease of up to 2% following the US's declaration of a blockade in the Strait of Hormuz.
On the Multi Commodity Exchange (MCX), gold futures (for the June 5 contract) fell by as much as 0.78%, or Rs 1,195, reaching an intraday low of Rs 1,51,457 per 10 grams. In addition, silver futures decreased by Rs 6,084, which is a 2.5% drop, settling at Rs 2,37,190 per kg, marking an intraday low as of 10:14 AM.
The yellow metal reached an intraday high of Rs 1,51,999, reflecting an increase of Rs 653 or 0.42% from the previous session's closing.
The white metal hit an intraday high of Rs 2,39,068, down Rs 4,206 or 1.72%.
Globally, precious metals were also under pressure. COMEX gold traded at $4,626, down 3.37% or $161, while spot gold was at $4,718.38, showing a decline of $30 or 0.61%.
COMEX silver fell by 5.14% or $3.9 to $72.54, while spot silver was at $74.43, down $1.44 or 1.90%.
Analysts suggest that COMEX gold is currently fluctuating between the $4,700–$4,750 range, with limited upward momentum. A drop below $4,650 could lead to further declines toward $4,600–$4,570 levels. Conversely, resistance is observed around $4,750–$4,770.
In the MCX market, gold is trading within the Rs 1,51,500–Rs 1,52,000 range, showing weak buying interest. A sustained rise above Rs 1,54,000 may renew momentum, while a fall below Rs 1,51,000 could extend the weakness further.
“For silver, COMEX prices remain below the $75 threshold, indicating a fragile market, with potential for further declines if prices fall below $72. Currently, MCX silver is trading near Rs 2,38,000 with resistance at Rs 2,40,000 and support at Rs 2,37,000,” they noted.
Market sentiment has been adversely affected by a recent escalation in the West Asia conflict, following the US and Iran's failure to reach an agreement in peace talks.
On Sunday, US President Donald Trump declared a blockade of the Strait of Hormuz.
The domestic equity indices, Sensex and Nifty, dropped by 2% in early trading, while several major Asian markets fell by up to 1%.
Additionally, the Indian rupee opened lower by 55 paise on Monday, starting the session at 93.28 against the US dollar.
Point of View
The financial markets are experiencing notable fluctuations. The decline in gold and silver prices reflects broader investor concerns about stability in the region. A cautious approach is recommended as the situation unfolds.
NationPress
1 May 2026
Frequently Asked Questions
Why did gold and silver prices fall?
Gold and silver prices fell by up to 2% due to the US announcing a blockade of the Strait of Hormuz, which escalated geopolitical tensions.
What is the current trading range for gold on MCX?
Gold is currently trading in the Rs 1,51,500–Rs 1,52,000 range on the Multi Commodity Exchange.
What does the blockade of the Strait of Hormuz mean for markets?
The blockade raises concerns about potential disruptions in oil supply, which can lead to increased volatility in financial markets, including precious metals.
