Key Takeaways
Gold prices in India underwent a sharp correction on April 22, providing relief to retail buyers after the U.S. extended its ceasefire with Iran, easing immediate geopolitical concerns and taking pressure off oil prices. The price for 24-karat gold fell by around Rs 540 per 10 grams, while 22-karat gold declined by nearly Rs 500 per 10 grams.
"The extension of the US-Iran ceasefire has eased immediate geopolitical tensions, which has already had a softening impact on yellow metal," said Ruchit Thakur, Market Analyst at VT Markets. "Gold continues to serve as a relatively stable safe-haven asset, supported by persistent geopolitical uncertainties, central bank buying—especially across Asia—and its role as an inflation hedge."
While physical gold prices corrected in India, international spot prices firmed on the news as a potential pullback in the U.S. dollar and reduced inflation fears offered support. According to Reuters, spot gold rose 0.9 percent to $4,755.11 per ounce, while U.S. gold futures for June delivery gained 1.1 percent to $4,772.90.
The move provides a breather for the precious metal, which had been pushed higher by safe-haven demand as Middle East tensions escalated. The market is now watching for Iran's response to the unilateral ceasefire extension and whether the diplomatic opening can lead to a more durable de-escalation.
Major jewellery brands across India updated their rates to reflect the correction. According to the India Bullion and Jewellers Association (IBJA), the indicative rate for 24-karat gold (999 purity) on the morning of April 22 was Rs 15,225 per gram, while 22-karat gold stood at Rs 14,860 per gram, excluding GST and making charges.
Silver also saw price movements, with analysts noting its dual role as a precious and industrial metal. "Silver, on the other hand, offers higher return potential but comes with greater volatility," Thakur added, suggesting it is well-positioned if global growth stabilizes.
This article is for informational purposes only and does not constitute investment advice.
