Gold Price Declines 1% on MCX Amid Profit Booking and Crude Oil Price Surge, US-Iran Talks Continue to Dominate Market Attention

Gold Price Declines 1% on MCX Amid Rise in US Dollar and Crude Oil Prices

On Monday, 20 April, the gold rate on the Multi Commodity Exchange (MCX) declined by 1% in early trade, driven by a rise in the US dollar and a spike in crude oil prices. The uncertainty surrounding the proposed talks between the US and Iran has contributed to the volatility in the global markets.

The MCX gold June futures were down 1% at ₹1,53,030 per 10 grams, while the MCX silver May futures were down 1.55% at ₹2,53,168 per kg around 9:10 am. In the previous session, the gold June futures contract settled at ₹1,54,609 per 10 grams, rising 0.95%, and the silver May futures contract settled at ₹2,58,079 per kilogram, clocking a solid gain of 3.8%.

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The elevated dollar, driven by a rise in crude oil prices, triggered profit-taking in gold and silver. Brent Crude prices jumped more than 5% to trade above the $95 per barrel mark amid reports that Iran has re-imposed the closure of the Strait of Hormuz. When crude oil prices rise, demand for the US dollar increases because crude oil is largely priced in dollars, which weighs on gold prices.

According to MCX data, gold prices have declined by about 5% in the domestic spot market since the US-Iran war began on February 28. However, year-to-date, the yellow metal has gained 14% after surging 75% in 2025.

The evolving situation in West Asia is precarious, with Iranian forces attacking some US military ships with drones after the US seized an Iranian-flagged cargo ship that tried to get around a naval blockade near the Strait of Hormuz. Gold and silver prices are experiencing high volatility amid uncertainty over a possible US-Iran peace deal, driven by movements in the dollar index and crude oil prices.

Commodity research analysts at various firms have provided their insights on the current market situation. Divya Mandaliya, a commodity research analyst at Anand Rathi Share and Stock Brokers, underscored that gold has surged from around $2,000 per troy ounce in early 2022 to $4,000-$4,500 levels, driven less by speculative flows and more by consistent institutional buying.

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Manoj Kumar Jain of Prithvifinmart Commodity Research highlighted that gold has support at ₹1,53,350 and ₹1,52,000, and resistance at ₹1,55,500 and ₹1,56,800, while silver has support at ₹2,53,000 and ₹2,48,800, and resistance at ₹2,61,000 and ₹2,66,000 on the MCX.

Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said the prolonged US-Iran conflict has sparked a historic energy supply shock, heightening inflation risks and raising the likelihood of further central bank rate hikes, which is weighing on gold. Trivedi predicted that MCX gold June futures may decline to ₹1,52,000 per 10 grams as the trend looks weak in the international markets too.