Silver price today edged lower as the dollar strengthened, while renewed tensions in the Middle East and the closure of the Strait of Hormuz pushed oil prices higher and reignited inflation concerns.
MCX Silver rates fell around 2% to ₹2,52,304 per kg on Monday, April 20, while MCX Gold price lost over 1% to ₹2,57,142 per 10 grams.
Among key metals, spot silver fell 0.5% to $80.36 per ounce. Platinum held steady at $2,103.38, while palladium slipped 0.1% to $1,556.45.
Spot gold was down 0.4% at $4,809.71 per ounce, as of 0155 GMT, after hitting its lowest level since April 13 earlier in the session. U.S. gold futures for June delivery declined 1% to $4,829.40.
The dollar index strengthened, making greenback-priced bullion more expensive for other currency holders, while benchmark 10-year U.S. Treasury yields rose 0.5%, reducing the appeal of non-yielding assets like precious metals.
Oil prices jumped and global equity markets turned volatile as rising tensions in the Middle East kept shipping activity in and out of the Gulf to a bare minimum.
Geopolitical risks escalated after the U.S. seized an Iranian cargo ship attempting to breach its blockade, with Iran warning of retaliation. This raised concerns that the ceasefire between the two countries may not hold even for the brief two-day period it was expected to remain in force.
Tehran also signalled it would not participate in a second round of negotiations that the U.S. had planned before the ceasefire expires on Tuesday, adding further uncertainty to global markets.
