Gold prices experienced a significant decline on Monday, with spot gold falling 1.4% to $4,790.59 per ounce as of 1103 GMT, after hitting its lowest level since April 13 earlier in the session. US gold futures for June delivery fell 1.4% to $4,811, while silver dropped 2.1% to $79.07 per ounce, platinum lost 1.7% to $2,066.90, and palladium was down 1.6% at $1,533.64. The decline comes after gold prices had surged over 50% from ₹99,500 per 10 grams on 30 April 2025 to ₹1,57,255 for 10 grams of 24K gold in Delhi as of 16 April 2026. Latest data shows India's 24K gold prices surged to ₹15,535 per gram on April 15, 2026, driven by Akshaya Tritiya demand ahead of April 19, while Dubai gold prices edged lower to Dh581.50 per gram as Trump's comments about Iran war being "close to over" and reports of ships resuming Hormuz transit cooled safe-haven demand.
Crude oil prices jumped dramatically on Monday after President Trump disclosed that the US Navy attacked an Iranian-flagged cargo ship amid the US blockage of the Strait of Hormuz. Brent crude oil prices were trading over 5% higher at $95.02 per bbl as of 7:20 am IST on Monday, compared to $90.38 per bbl at the previous commodity market close, according to Investing.com data. West Texas Intermediate (WTI) crude oil prices were trading 5.3% higher at $87.02 per bbl on April 20, compared to $82.5 per bbl at the previous market close. The surge came after oil prices dropped to a low of $86.09 per bbl during Friday's trading session. Trump announced that the US Navy attacked an Iranian-flagged cargo ship named "Touska," nearly 900 feet long and weighing almost as much as an aircraft carrier, which refused to comply with the naval blockade and was "blown a hole in the engine room." The situation deteriorated further as Iranian gunboats fired on Indian tankers attempting to transit the strait following Iran's announcement of renewed closure, with no tankers reported to have crossed the strait on Sunday according to vessel tracking data.
The precious metal faced additional pressure from a strengthening US dollar index, making greenback-priced bullion more expensive for holders of other currencies. Benchmark 10-year US Treasury yields gained, increasing the opportunity cost of holding non-yielding bullion. As per Reuters, analysts noted that oil's surge after the weekend's chaotic events surrounding the Strait of Hormuz ensure that inflation risks remain palpable, offsetting gold's allure as a safe-haven asset. Rising energy costs stemming from the war in Iran have stoked inflation concerns and pushed the yellow metal lower on expectations of monetary tightening by the US Federal Reserve. Despite gold's traditional role as an inflation hedge and safe haven during geopolitical uncertainty, the current environment has created a complex dynamic where energy price volatility from Middle East tensions is counteracting gold's defensive appeal.
Deveya Gaglani, Senior Research Analyst- Commodities at Axis Securities, noted that gold prices have surged over 50% since last Akshaya Tritiya due to strong global cues and sustained investor interest. As reported by Mint, Gaglani expects prices to retest $5,300–$5,500 levels globally and ₹1,70,000–₹1,85,000 domestically over the next year. Hardaman Singh Seth from Mirae Asset Investment Managers highlighted that gold ETFs recorded a large net inflow of around ₹70,000 crore for FY ended 2026, with the category's AUM jumping to ₹1,71,468 crore since the first Gold ETF launch in 2007. The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, reported its holdings rose 0.1% to 959.69 metric tons on Thursday, indicating continued institutional interest despite the recent price decline. Market analysts suggest that while central bank buying, de-dollarisation and currency debasement trends may have faded but remain alive and can support bullion, the current environment requires careful navigation of inflation risks and geopolitical uncertainties.
India's gold demand remained subdued during one of the country's key buying festivals as record prices curbed jewellery purchases, offsetting a modest uptick in investment demand. According to The Economic Times, this muted demand reflects the impact of record gold prices on consumer purchasing power during the festival period. The decline comes after gold prices had surged over 50% from ₹99,500 per 10 grams on 30 April 2025 to ₹1,57,255 for 10 grams of 24K gold in Delhi as of 16 April 2026. Despite the price pressure, experts recommend treating gold as a core diversification investment rather than a speculative trade, with focus on systematic investment approaches such as gold ETFs or SIP-style accumulation to navigate volatility and build consistent returns.
