Summary of this article
Gold, silver prices fell as crude oil prices rose
Investors are eyeing US Federal Reserve's rate decision this week
Gold prices edged lower on April 27, 2026, pressured by a stronger dollar and rising oil prices, as geopolitical tensions and stalled negotiations between the US and Iran weighed on market sentiment. On the Multi-Commodity Exchange (MCX), gold futures prices fell 0.30 per cent to Rs 1.52 lakh for 10 grams. Meanwhile, silver futures were trading 0.5 per cent lower at Rs 2.34 lakh per kg.
This followed a fall in international spot gold prices, which slipped about 0.10 per cent to $4,704 per ounce, while US gold futures declined roughly 0.40 per cent. The drop came as investors grew cautious ahead of a series of key central bank meetings globally this week, particularly the US Federal Reserve, the European Central Bank, the Bank of England, and the Bank of Japan.
A robust dollar, which makes bullion more expensive for holders of other currencies, also dampened the demand and prices of precious metals. At the same time, surging oil prices—driven by supply disruptions linked to the ongoing US-Iran conflict—have intensified fears of persistent inflation. Brent crude rose above $106 per barrel as shipments through the Strait of Hormuz remained constrained.
While gold is traditionally viewed as a hedge against inflation, the current environment of inflationary pressures and rising dollar has complicated its appeal. Higher inflation expectations could prompt central banks globally to keep interest rates elevated for longer, increasing the attractiveness of yield-bearing assets, such as bonds while reducing the demand for non-yielding assets, such as gold.
Market participants are now eyeing the decisions of global central banks in their upcoming policy meetings, with expectations that the US Fed may hold rates steady, but maintain a cautious, possibly hawkish stance due to inflation risks. Domestically too, rising crude oil prices have increased caution on a possible rate hike by the Reserve Bank of India (RBI) later in the year, as India imports almost 90 per cent of its oil needs.
Meanwhile, efforts to revive peace talks between Washington and Tehran have faltered, with recent diplomatic initiatives cancelled and both sides still far apart. The prolonged conflict has disrupted oil flows and added uncertainty to global markets. Iran has offered a new proposal to the US, conveyed through Pakistani intermediaries, aimed at de- escalating current tensions. However, US President Donald Trump has called back the country’s delegates home, saying that further negotiations can be conducted over the phone.
“If they want to talk, they can come to us, or they can call us,” Trump said on April 26. He reiterated that the war would “come to an end very soon.”
