Gold Slips ₹820 as Oil Rally, Iran Blockade Stoke Rate Fears

"Trump continues to maintain the blockade of ships flowing out of the Strait of Hormuz, causing oil prices to rise and gold to come under pressure," OANDA senior market analyst Kelvin Wong said, Reuters reported.

Higher crude prices feed directly into inflation expectations. That keeps the case for prolonged elevated interest rates in play. Gold, which carries no yield, traditionally struggles in a high-rate environment even though investors often buy it as an inflation hedge.

On the Multi Commodity Exchange, gold futures traded 0.46% lower at ₹1,41,601 per 10 grams. Silver futures were down 0.41% at ₹2,22,266 per kilogram shortly after 9:15 a.m.

The yellow metal has lost more than a fifth of its value since the West Asia war escalated in late February. A wave of profit-taking ended a three-year bull run, and the current geopolitical tailwind has not been enough to reverse that flow.

City-wise retail rates this morning reflected the broad decline. In New Delhi, 24-karat gold stood at ₹1,41,660 per 10 grams and silver 999 fine at ₹2,21,830 per kilogram. Mumbai quoted 24-karat at ₹1,41,860 and silver at ₹2,22,100. The highest gold rate among major cities was in Chennai at ₹1,42,320, while Kolkata recorded the lowest at ₹1,41,670.