Gold Price Today: The yellow precious metal price fell on India's MCX on Monday, April 13, as US-Iran ceasefire talks fail and President Donald Trump announced the a blockade of the Strait of Homruz.
At 9:02 am on Monday, the MCX gold May futures contract fell 0.7% or Rs 1,055 to Rs 1,50, 160 per 10 grams, while the MCX silver May futures dropped 2.23% or Rs 5,424 to Rs 2,37,850 per kg.
Globally, the bullion fell amid inflation concerns as the US-Iran peace talks concluded without any agreement and the Trump administration's plan to blockade the Strait of Hormuz, raising concerns of global energy supply shock. Gold dropped around 2.2% touching below $4,650 an ounce in early trading, according to data collected by Bloomberg.
The US Navy plans to begin the blockade by 10 am ET (7:30 pm IST) after negotiations with Iran during the weekend did not turn fragile ceasefire into a lasting peace following six weeks of war in the Middle East.
Gold has slid nearly 11% since the conflict began at the end of February, with liquidity concerns during the early weeks of conflict as investors offloaded the bullion to cover losses elsewhere. Recently, gold recovered some losses amid growing focus on slowing economic growth countered the risk of higher inflation.
As early indication of the war's impact on the US economy, March inflation rose the most in nearly four years, with a record increase in gasoline prices responsible for nearly three-quarters of the monthly advance, according to data from the Bureau of Labor Statistics released Friday. Spot gold dropped 0.6% to $4,723.55 an ounce at 10:01 a.m. in Singapore, while silver slid 2% to $74.36 an ounce, Bloomberg data showed.
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