Gold, Silver Prices on 21 April: Rates for 24 kt, 22 kt Gold and 999 Silver in Delhi, Mumbai, and Other Cities

Gold and Silver Prices Decline Amid US Dollar Uptick and Uncertainty Over US-Iran Talks

On Tuesday, gold prices on the Multi Commodity Exchange (MCX) experienced a decline in early deals, attributed to profit-taking amid an increase in the US dollar. The persisting uncertainty over the proposed US-Iran talks has kept crude oil prices elevated, weighing on gold prices.

MCX Gold and Silver Prices as of 21 April

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The volatility in gold and silver prices has been driven by the rise in the US dollar, primarily due to the spike in crude oil prices. When oil prices rise, demand for the dollar increases, as oil is largely traded in US dollars, driving the greenback higher and weighing on gold prices. Even after Brent Crude oil prices eased slightly, they traded near the $95 a barrel.

Higher crude prices raise inflationary risks with increased transportation and production costs. These high prices dim the prospects of interest rate cuts, making yield-bearing assets, such as fixed deposits and bonds, more attractive, weighing on non-yield-bearing gold prices.

The focus is on potential talks between the US and Iran, as the two-week ceasefire is set to expire on Wednesday. Gold has declined roughly 9% and silver has lost around 14% since the beginning of the US-Iran war in late February.

Gold Prices Across Major Indian Cities as of 21 April

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The rise in the US dollar and uncertainty over the US-Iran talks have contributed to the volatility in gold and silver prices. According to reports, US President Donald Trump hinted on 20 April that the ceasefire between Washington and Tehran may not be extended. Meanwhile, Axios reported that US Vice President JD Vance may depart for Islamabad by 21 April morning to resume negotiations with Iran. Reuters reported that Iran is considering attending peace talks with the US in Pakistan.

Asia-Pacific markets opened mixed on Tuesday amid hopes for a resolution to the Middle East conflict, even as tensions between Iran and the US continue to simmer. US stock futures were little changed on Monday night after the Nasdaq Composite snapped a 13-day win streak during the regular session. S&P 500 futures and Nasdaq 100 futures added 0.1% and 0.2%, respectively. Futures tied to the Dow Jones Industrial Average rose by 70 points, or 0.2%.