Gold and silver prices traded with modest losses on Thursday, 23 April, as a rebound in crude oil prices reignited inflation fears, while a stronger US dollar made precious metals less appealing to investors.
COMEX gold futures dropped $53 per troy ounce to an intraday low of $4,700, while silver futures fell $3.70 to $74.23. The week began with a sense of potential peace in the Middle East, but that optimism eventually faded, amid renewed tensions, dragging both gold and silver to a two-week low.
Inflation fears returned to the spotlight as crude oil prices extended their gains for a fourth straight session after remaining subdued over the past two weeks, amid limited progress in diplomatic efforts between the US and Iran.
Reports also indicated that the US intercepted at least three Iranian oil tankers in Asian waters, raising concerns over potential supply disruptions. Tehran has continued to assert control over the Strait of Hormuz, restricting nearly all international traffic and reportedly firing on commercial vessels this week.
Iran has also reportedly seized two ships in the strategic waterway after US President Donald Trump announced he was indefinitely calling off attacks, with no signs of peace talks resuming.
Both Iran and the US appear to be leveraging control over the Strait of Hormuz amid the extended ceasefire. In the latest escalation, Trump ordered the US military to “shoot and kill” Iranian small boats disrupting movement in the key waterway.
Iran has stated it will not participate in negotiations while a US naval blockade on its ports remains in place. State TV, citing the foreign ministry, said the country’s armed forces are prepared to respond to further threats, Bloomberg reported.
Traffic through the Strait of Hormuz remains largely stalled, with only occasional movements of Iran-linked vessels. A prolonged disruption in the waterway could worsen energy supply constraints and slow global economic growth, indicating a return to heightened tensions seen earlier this year.
The US dollar inched higher, making dollar-denominated bullion more expensive for holders of other currencies. Meanwhile, benchmark 10-year US Treasury yields rose to a more than one-week high, increasing the opportunity cost of holding non-yielding assets like gold.
Meanwhile, a Reuters poll of economists indicated that the US Federal Reserve is likely to wait at least six months before cutting interest rates this year, as war-driven energy shocks continue to stoke already elevated inflation.
MCX gold eases over ₹1,200; silver fell back to ₹2.39 lakh
In the domestic market, the near-month gold futures contract on MCX slipped ₹1,206 per 10 grams to hit the day’s low of ₹1,51,451, marking its lowest level since 13 April. The silver futures contract fell even more sharply, declining by ₹8,764 per kilogram to ₹2,39,600. Silver was last seen around this level about two weeks ago.
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