US-Iran war: Gold and silver rates today tumbled as much as 3% amid rising inflation worries, as US-Iran war ceasefire talks ended with no deal and US plans to blockade the Strait of Hormuz intensified fears of a global energy supply shock.
COMEX gold rate today dropped by up to 2.2%, slipping below $4,650 an ounce and erasing the gains from the previous week. Meanwhile, COMEX silver prices slided 3.29% to $74 per ounce, during the Asian trading hours on Monday, April 13.
Why gold and silver prices are falling today?
Precious metals came under pressure after brent crude oil prices surged as much as 8.4% to $103.24 a barrel in early trading on Monday.
The US military announced it will enforce a blockade starting 10 a.m. Eastern Time on Monday, after weekend talks with Iran failed to convert a fragile ceasefire into a lasting peace following six weeks of conflict in the Middle East.
According to a Bloomberg report, President Donald Trump also said that the US would intercept any vessel that has paid Iran for safe passage through the Strait of Hormuz, a critical maritime route connecting the Persian Gulf to global markets. Prior to the war, about one-fifth of the world’s crude oil and liquefied natural gas moved through this chokepoint.
Equity futures declined while the dollar strengthened by as much as 0.4%, creating pressure on precious metals, which is priced in US currency. Rising energy costs also heightened inflation concerns, increasing the likelihood that central banks may delay rate cuts or even raise rates. This scenario is typically unfavorable for gold, which tends to perform better when borrowing costs are low, according to the Bloomberg report.
Offering an early glimpse into the war’s economic impact, US inflation surged in March at its fastest pace in nearly four years. A record jump in gasoline prices accounted for almost three-quarters of the monthly increase, according to data released Friday by the Bureau of Labor Statistics.
Gold and silver prices outlook
According to Ponmudi R, CEO of Enrich Money, the commodities market is heading into the week on a cautiously balanced note, with sentiment shaped by stabilising price action and continued macro uncertainty.
Precious metals are showing early signs of stability following recent volatility, with gold and silver finding support from renewed safe-haven demand even as markets continue to respond to evolving global cues, he noted.
On the gold prices outlook, Ponmudi said that COMEX Gold is currently hovering around the $4,750–$4,800 range, following a gradual rebound from last month’s sharp drop. The recent price movement indicates the metal is entering a phase of consolidation, as it attempts to establish a short-term base after a period of elevated volatility.
“On the daily chart, gold remains above the key support zone of $4,650–$4,600, aligning with recent swing lows and continuing to serve as a near-term demand area. This suggests that selling pressure is easing, while bullish momentum is slowly trying to regain strength, though a clear confirmation is still pending. However, a break below this support could push prices lower toward $4,400–$4,300, where stronger buying interest is likely to appear,” he said.
On the silver prices outlook, he added that COMEX Silver is trading above the $76 level, indicating an attempt to stabilise after the sharp corrective phase seen in the previous month. The current structure suggests that prices are trying to rebuild near-term support, although momentum remains mixed.
“On the downside, a decisive break below $70–$69 could bring back selling pressure, dragging prices toward $68–$65 and further toward the $62–$60 zone, where stronger buying interest is likely to emerge. The technical structure remains range-bound with a mildly weak undertone, and directional clarity is likely to emerge only upon a decisive breakout above resistance or a breakdown below key support levels,” Ponmudi said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
