Mumbai, May 23: Gold prices have seen a slight increase of 0.19% this week, driven by ongoing geopolitical tensions and volatility in crude oil prices.
On Friday, MCX Gold June futures dropped by 0.06%, while MCX Silver May futures weakened by 0.09%. Currently, gold futures are trading at ₹1,58,588, and silver futures at ₹2,71,600 per kilogram on the Multi Commodity Exchange (MCX).
According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 999 purity gold stood at ₹1,58,117 on Friday, up from ₹1,57,821 at the market’s opening on Monday.
Analysts noted a slight weakening in gold prices towards the end of the week, as Comex gold stabilized around $4,535. The strengthening of the rupee has also exerted pressure on bullion prices in the domestic market.
Media reports suggest that progress in talks between the U.S. and Iran has led to a slight slowdown in the purchase of precious metals. However, ongoing tensions regarding the Strait of Hormuz continue to provide support for gold in the short term.
Experts indicated that positive signals from U.S.-Iran negotiations are providing support for Comex gold around the $4,500 mark, but uncertainty regarding the final outcome is keeping market volatility high.
The World Gold Council reports that gold demand in India for the calendar year 2026 could decline by 10% or 50-60 tons on an annual basis, primarily due to increased import duties.
The government has raised the import duty on gold from 6% to 15%, marking the largest increase to date. This change completely nullifies the duty reduction implemented in July 2024.
Looking ahead, the direction of gold prices will depend on U.S.-Iran relations, the movement of the dollar index, and fluctuations in the rupee.
Analysts suggest that rising bond yields may exert pressure on gold and silver in the near term. The yield on U.S. 30-year Treasury bonds remains above 5%, while the yield on 10-year bonds was over 4.5% at the end of the week.
Due to increasing bond yields, the U.S. Federal Reserve may raise interest rates by the end of 2026, which could increase the holding costs for non-interest-bearing investments like gold and silver.
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