Gold rate falls 1% on MCX due to profit booking amid a spike in crude oil prices; US-Iran talks remain in focus
Gold price today: Gold rate declined by 1% on the MCX in early trade on Monday, 20 April, amid a rise in the US dollar, driven by a spike in crude oil prices amid persisting uncertainties over the proposed talks between the US and Iran.
MCX gold June futures were down 1% at ₹1,53,030 per 10 grams, while 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%.
An elevated dollar, driven by a rise in crude oil prices, triggered profit-taking in gold and silver.
The dollar index rose by nearly 0.30%, weighing on greenback-denominated bullion prices.
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. This 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.
Even though the two-week ceasefire between the US and Iran will run till Tuesday, the evolving situation in West Asia is precarious. According to media reports, Iranian forces attacked 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.
Divya Mandaliya, a commodity research analyst at Anand Rathi Share and Stock Brokers, underscored that gold has surged from around $2,000 per troy in early 2022 to $4,000–$4,500 levels, driven less by speculative flows and more by consistent institutional buying.
“As the world shifts toward a multi-polar reserve system, gold is moving beyond a hedge to become a core monetary asset. This structural demand is likely to anchor prices and create a strong floor over the medium to long term,” said Mandaliya.
Manoj Kumar Jain of Prithvifinmart Commodity Research highlighted that gold has support at $4,840 and $4,770, while resistance is at $4,910 and $4,955 per troy ounce, and silver has support at $78.80 and $76.60, while resistance is at $84 and $86.20 per troy ounce in today’s session.
On the MCX, Jain said 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.
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.
“MCX gold June futures may decline to ₹1,52,000 per 10 grams as the trend looks weak in the international markets too,” said Trivedi.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
