On April 20, gold prices eased as a firmer U.S. dollar and renewed geopolitical tensions pulled the metal back from last week’s ceasefire-inspired rally. Gold spot price is trading at $4,795.99 per ounce, down $34.00 (-0.70%) on the day. Silver spot price is trading at $80.28 per ounce, up $0.52 (+0.65%) on the day. The gold/silver ratio stands at 59.7, roughly unchanged from Friday’s close. The key catalyst: reports that the Strait of Hormuz has been closed again drove crude oil sharply higher and revived inflation anxieties, lifting the dollar and Treasury yields simultaneously, a dual headwind for non-yielding bullion. U.S. gold futures for June delivery fell 1.3% to $4,817.10, reflecting the risk-off tilt in paper markets even as physical demand remains firm. Iran’s refusal to participate in a second round of negotiations before the ceasefire expires Tuesday has traders bracing for a potential escalation, keeping the war-trade framework firmly in place.
According to CNBC’s report today, Gold falls on stronger dollar amid renewed U.S.-Iran tensions, the U.S. seizure of an Iranian cargo vessel attempting to breach its blockade and Tehran’s vow to retaliate has cast doubt on whether the ceasefire will survive even its two-day window. Ilya Spivak of Tastylive noted that the familiar war-trade dynamics have returned: crude rallies, inflation expectations rise, and the dollar strengthens, pressuring gold despite its traditional safe-haven role. The hidden insight for physical investors: paper gold is selling off on macro crosswinds, but the underlying supply chain tells a different story. With Hormuz shuttered and oil prices climbing, industrial silver demand, already constrained by critical-mineral designations and multi-year supply deficits, faces additional cost pressure from higher energy inputs. Physical premiums are likely to widen in the days ahead, meaning the spot price dip could represent a narrow window for accumulation before premiums re-price upward. As OCBC strategist Christopher Wong observed, gold’s directional trade remains hostage to ceasefire developments, but physical markets price scarcity, not headlines.
