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Informist, Monday, Apr. 20, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold and silver on the Multi Commodity Exchange of India and COMEX fell Monday on renewed fears of inflation as crude oil prices rose again on signs of the tensions in West Asia escalating again, analysts said.

 

At 1805 IST, the most active June contract of GOLD was down 0.5% at INR 153,778 per 10 grams on the MCX. The same-month contract on COMEX was down 0.9% at $4,855 per ounce. The most active May SILVER contract on the MCX was down 2% at INR 252,429 per kilogram. The same-month contract on COMEX was down 3% at $79.75 per ounce.

 

"The prolonged conflict triggered a historic energy supply shock, significantly raising inflation risks and strengthening expectations of further central bank rate hikes," analysts at Kedia Advisory said in a note. "This pressured gold prices, with the metal now down 10% since the onset of the war," he added.

 

Sunday, US President Donald Trump said the US military had seized an Iranian cargo ship that had tried to break through the US naval blockade of the Strait of Hormuz and Iran said it would retaliate. The US military said it had fired on a cargo ship flying the Iranian flag as the vessel sailed towards Iran's Bandar Abbas port. Meanwhile, Iran said it would not participate in a second round of negotiations with the US, citing the blockade, threatening rhetoric, and Washington's shifting positions and "excessive demands".

 

Although gold is considered an inflation hedge and a safe haven during geopolitical and economic uncertainty, rising energy costs stemming from the war in Iran have stoked fears of inflation and pushed the yellow metal lower on concern of a hike in interest rates by the US Federal Reserve, analysts said. 

 

Meanwhile, market participants await Tuesday's congressional testimony from Kevin Warsh, the incoming Fed chair, his first since nomination. Investors will be listening closely for early signals on his policy stance and the Fed's tolerance for energy-driven inflationary pressure, Kaynat Chainwala, assistant vice-president of commodity research, Kotak Securities, said in a note. "Nonetheless, the primary driver is likely to remain the evolving U.S.–Iran standoff, with any material escalation expected to exert additional downward pressure on bullion prices," Chainwala added.

 

Outlook for the rest of the session:

--MCX gold seen at INR 151,000–INR 155,000 per 10 grams

--COMEX gold seen at $4,750–$4,870 an ounce

--MCX silver seen at INR 249,000-INR 255,000 per kg

--COMEX silver seen at $76.00-$82.00 an ounce

 

End

 

US$1 = INR 93.12

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Rajeev Pai

 

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