Gold prices today: MCX gold drops 1.1%; silver loses over ₹6,000/kg amid elevated US dollar rate, West Asia tensions

Gold prices on the Multi-Commodity Exchange (MCX) of India, lost around 1.1% during the morning market session on Monday, April 20, amid a higher US dollar demand weighing down on precious metals due to recent developments in the West Asia conflict.

Experts said that investors were driving down the precious metals with their trading sentiment fuelled by sustained bearish cues wiping out the previous week’s gains due to the escalating tensions in the Strait of Hormuz between the United States and Iran.

US President Donald Trump announced that the US Navy attacked an Iranian-flagged vessel attempting to cross the key trading route amid the US blockade and the ceasefire deal between the two nations which is set to expire on Wednesday this week.

MCX gold prices dropped 1.17% or ₹1,810 per 10 grams its intraday low level of ₹152,799 per 10 grams during the morning market session on Monday, compared to ₹1,54,609 per 10 grams at the previous market close, according to the official data.

As of 12:47 pm, the MCX gold prices were trading 0.74% or ₹1,144 per 10 grams lower at ₹1,53,465 per 10 grams on April 20, compared to the previous market close levels, according to the exchange data.

Silver price today

The exchange data also showed that the MCX silver prices also remained under pressure with investors booking their profits amid an elevated dollar rate.

Silver prices dropped 2.36% or ₹6,071 per kilogram (kg) to hit the day’s low of ₹2,51,071 kg on Monday, compared to ₹257,142 per kg at the previous commodity market close levels, according to MCX data.

As of 12:54 pm, the MCX silver prices were trading 1.59% or ₹4,082 per 10 grams lower at ₹2,53,060 per 10 grams on April 20, compared to the previous market close levels, according to the exchange data.

The news portal PTI reported that commodity analysts attributed Monday’s falling prices to the weak global cues in the market, sell-off pressure from investors and a falling spot demand for precious metals.

US dollar rate today

Data collected from the Bloomberg US dollar spot index (DYX) showed that the greenback was trading 0.12% higher at ₹98.216 as of 3:18 am (EDT) on April 20, compared to the previous currency market close levels.

The elevated dollar rate in the market was imposing pressure on the demand for gold and silver as traders will be able to purchase lower quantity of the assets with a higher US dollar price, hence marking an inverse relation between the commodity price and the benchmark currency rate.