Gold Pulls Back From Friday Highs Even As Iran Crisis Deepens

Mumbai, April 13: Gold prices in India traded lower across major centres on Monday after staging an impressive recovery on Friday, riding through dramatic developments over the weekend that have made the geopolitical landscape far more precarious.

The rates morning trade were ₹15,246 per gram for 24 karat gold and ₹1,52,460 per 10 grams nationally, down ₹540 from Friday’s closing price of ₹1,53,000 per 10 grams. The rate for 22 karat gold softened to ₹1,39,750 per 10 grams from ₹1,40,250 on Friday, while 18 karat rates eased to ₹1,14,340 from ₹1,14,750. It’s mild retracement after rising sharply in both Thursday and Friday trade last week.

Middle East Conflict

Tensions between Washington and Tehran spiked over the weekend after marathon peace talks held in Pakistan concluded on Sunday without a resolution; shortly after US forces announced that they will be blockading all Iranian ports starting at 10 am EST Monday. Gold futures rallied slightly overnight and at the open of Asian markets on Monday morning, but for now traders have opted to book profits rather than chase higher prices for bullion that’s traded at wildly volatile levels over the past week.

Safe haven asset gold had already seen most of its geopolitical risk premium priced in after Thursday and Friday’s binges; when national 24K prices jumped by ₹3,160 per 10 grams in just two days. When investors faced the worst-case scenario they decided to take some chips off the table.

Gold prices remained highest in Chennai city on Monday as has been the case for much of April so far; trading at ₹1,53,380 per 10 grams for 24K and enjoying a premium of ₹920 over national benchmark prices. Chennai gold prices also corrected ₹710 per 10 grams versus Friday’s closing price of ₹1,54,090. Delhi traded slightly weaker at ₹1,52,610 per 10 grams on Monday for 24 karat gold — down ₹540 from Friday and consistent with the ₹150 premium it typically trades over national benchmark rates.

Meanwhile, Gujarat saw both Vadodara and Ahmedabad quote gold at ₹1,52,510 per 10 grams for 24K on Monday down ₹540 per 10 grams from Friday’s price of ₹1,53,050; consistent with their typical baseline of ₹50 premium to Mumbai prices. Mumbai, Kolkata, Bangalore, Hyderabad, Kerala and Pune were all once again perfectly aligned at ₹1,52,460 per 10 grams for 24K gold.

U.S. Sets Iranian Port Blockade For Monday Morning

Asia markets opened to see oil surge back above $100 a barrel on Monday as fears of Iranian supply disruptions mount once again. Brent crude, the global benchmark, rose 7.3% to $102.30 per barrel while West Texas Intermediate climbed an even sharper 8.7% to $104.94. The blockade could choke off Iranian oil exports completely; further inflaming an already tenuous global energy crisis that threatens to stoke inflation even higher in import-dependent nations.

Just last week crude prices had plunged below $100 as Washington and Tehran agreed to a conditional ceasefire; reopening the Strait of Hormuz chokepoint to global shipping traffic after rising tensions led to temporary closures last week.

Iran Port Blockade: Weekend Highlights

Sunday evening US forces confirmed that they would begin blockading Iranian ports beginning at 10 am EST Monday; escalating tensions between Washington and Tehran to new highs after talks hosted by Pakistan concluded with no deal in sight. US Central Command (CENTCOM) said all maritime traffic will be blocked from both entering to exiting Iranian ports and coastal areas effective Monday morning — impacting ships registered in every country from across the globe. “This includes the full scope of the Persian Gulf and the Gulf of Oman,” CENTCOM spokesperson Captain Bill Urban said in a statement.

Gold Prices Across Cities — Friday vs Monday (Per 10 Grams, 24K)

Source: https://www.goodreturns.in/gold-rates/