MCX gold falls 1%, silver slumps 2.5% to ₹2.37 lakh/kg as US-Iran talks fall through; check other factors

Gold futures for delivery in June declined as much as 0.8% or ₹1,195 to touch an intraday low of ₹1,51,457 per 10 grams on the Multi-Commodity Exchange (MCX) on Monday, April 13, compared to the closing price of ₹1,52,652 per 10 grams in the previous session.

At around 2:46 PM, the contract was trading 0.62% or ₹942 lower at ₹1,52,144 per 10 grams in lots of 7,692, as precious metal prices witnessed heightened volatility amid the collapse of US-Iran negotiations, keeping the sentiments fragile.

Over the past week, the yellow metal futures contracts closed 2% higher, for the third consecutive week.

Similarly, silver futures for expiry in May slumped as much as 2.5% or ₹6,084 to hit the session’s low of ₹2,37,190 per kilogram on the MCX, in comparison to the close of ₹2,43,274 per kilogram on Friday.

The white metal contract stood at ₹2,38,490 per kilogram, marking a 1.97% or ₹4,784 drop at the time of writing in business transactions of 5,769 lots. It closed nearly 5% higher over the past week, ending in the positive territory for the third consecutive week.

The MCX will observe a partial holiday tomorrow, Tuesday, April 14, on the occasion of Ambedkar Jayanti. This means that while the domestic exchange will be closed for the morning session ( 9 AM to 5 PM), it will reopen for the evening session starting at 5 PM.

International gold, silver prices

COMEX gold futures for delivery in June dropped as much as 3.37% to hit an intraday low of $4,626 per troy ounce on Monday, compared to the closing price of $4,787.40 per troy ounce in the previous trading session. At the time of writing, it was trading 0.90% higher at $4,744.40 per troy ounce.

COMEX silver contracts for expiry in May declined as much as 5.14% to touch the day’s low of $72.545 per ounce, from the close of $76.48 per ounce on Friday. It stood at $74.62 per ounce, down by 2.43% at the time of writing.

Why are gold, silver prices falling

Prices of gold and silver fell on Monday, April 13, as the US-Iran ceasefire talks fell through over the weekend.

In the aftermath of the failed negotiations, US President Donald Trump said that the United States was planning on blockading the Strait of Hormuz. These developments sent crude oil prices over the $100 per barrel (bbl) mark.

Market participants will also closely monitor the talks between Israel and Lebanon scheduled for next week in the US.

Besides the developments related to the war in West Asia, investors will be on the lookout for the release of a plethora of macroeconomic indicator data from across the globe this week.

Investors will track the US Producer Price Index (PPI), crude oil prices, speeches from several US Federal Reserve officials, Chinese economic data on trade, investments, etc., along with inflation numbers from Eurozone economies.

Furthermore, investors will also monitor India’s Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation data, set for release early this week.