Gold futures drop to Rs 1.51 lakh per 10g as Hormuz blockade fears continue

New Delhi, April 13: Gold prices declined by Rs 1,162 to Rs 1.51 lakh per 10 grams in the futures trade on Monday, as the dollar strengthened amid US plans to blockade the Strait of Hormuz after failed weekend talks with Iran, raising concerns about a worsening global energy crisis.
On the Multi Commodity Exchange, the yellow metal for June delivery fell by Rs 1,162, or nearly 1 per cent, to Rs 1,51,490 per 10 grams in a business turnover of 7,739 lots.
In the overseas market, Comex gold futures for the June contract fell USD 51.40, or 1.07 per cent, to USD 4,736 per ounce in New York.
Gold also slipped towards the USD 4,700 per ounce mark as the US’s plans to blockade the Strait of Hormuz following failed weekend talks with Iran heightened concerns over a worsening global energy crisis, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said.
Meanwhile, US Central Command said it would begin a blockade of all Iranian Gulf ports and coastal areas on Monday at 10 am ET (7:30 pm in IST), effectively seizing control of maritime traffic in the Strait of Hormuz.
According to reports, the United States military has sent a note to seafarers warning that the blockade will apply to all vessel traffic, regardless of flag.
The collapse of negotiations between the US and Iran has failed to produce an agreement, amplifying concerns over supply disruptions and elevated curd prices, which could stoke inflation and complicate the global interest-rate outlook.
Higher energy costs and persistent inflation risks could prompt global central banks, including the US Federal Reserve, to delay interest rate cuts, limiting upside in bullion prices.
Gold has declined by more than 10 per cent in the international markets since the conflict began, as investors balanced demand for the precious metal against a firm US dollar and rising Treasury bond yields. (PTI)