Gold prices experienced a significant decline on Monday, May 11, 2026, with 24-carat gold rates dropping by ₹5,500 in Chennai and ₹2,200 in Hyderabad. According to reports from Goodreturns, the 24-carat gold rate in Chennai is now at ₹1,53,820 per 10 grams, down from the previous day's level. In Hyderabad, the 24K gold rate stands at ₹1,52,130 per 10 grams, also declining by ₹2,200. The 22-karat gold variant in Chennai is priced at ₹1,41,000 per 10 grams, while in Hyderabad it is available at ₹1,41,000 per 10 grams. The 18-karat gold variant is now priced at ₹1,17,700 per 10 grams in Chennai, down by ₹400. Latest data shows MCX gold trading at ₹1,51,558 per 10 grams, down by ₹972 or 0.64%, near its intraday low of ₹1,51,500 per 10 grams. As per CNBC TV18, MCX gold fell below the ₹1.52 lakh mark in early trade, while MCX silver saw a sharper correction with prices declining by nearly ₹1,000 before stabilising.
The price decline was primarily attributed to a slightly stronger US dollar that applied mild pressure on domestic bullion markets, as reported by Goodreturns. However, the latest developments show spot gold crashed by more than 1% to trade at $4,650–$4,680 per ounce, with the bullion touching an intraday low of $4,648.30 per ounce. The decline was further supported by safe haven like gold faced selling pressure as crude oil prices witnessed new upside momentum due to latest Middle East conflict developments. US WTI Crude oil is up by 4.5% to trade near 100 per barrel mark, while Brent Crude surged by over 4% to reach near 106 per barrel mark. In the latest development, Israeli Prime Minister Benjamin Netanyahu said that war with Iran is not over, while US President Donald Trump rejected Iran's renewed peace proposal, stating "I have just read the response from Iran's so-called "Representatives." I don't like it - TOTALLY UNACCEPTABLE!" According to CNBC TV18, analysts said renewed uncertainty over US–Iran negotiations and rising crude oil prices have pushed inflation concerns higher, keeping pressure on bullion. As per Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, "Gold prices fell in early morning trade after posting weekly gains, pressured by a firm dollar and elevated oil prices after President Trump rejected Iran's latest response to a US-backed peace proposal."
According to Abhishek M Pelu, Research Analyst at Way2Wealth Research, gold prices rose above $4,720 per ounce, hitting their highest level since April 22, supported by easing US-Iran tensions and stronger-than-expected US jobs data. As reported by Goodreturns, on the technical front, MCX Gold is trading above the falling resistance trendline as well as the short-term EMA, which keeps the daily momentum positive. The outlook for the week remains cautiously positive with resistance placed at ₹1,55,500 and support at ₹1,47,950. MCX Gold is likely to trade within this range going forward unless a clear breakout or breakdown occurs. However, gold prices have plunged over 10% since US-Israel-Iran conflict escalated in late February, largely due to rising oil prices that intensified inflation concerns and strengthened expectations of higher interest rates. According to Gaurav Garg, Research Analyst at Lemonn Markets, gold prices slipped while silver showed relative resilience amid steady retail demand linked to seasonal buying. Experts said higher crude oil prices are fuelling inflation fears, which in turn are impacting expectations on interest rates — a key factor for non-yielding assets like gold. As per CNBC TV18, analysts expect bullion to remain range-bound with a negative bias unless geopolitical tensions escalate further or dollar strength eases.
Both gold and silver futures showed volatility on the exchange, with gold futures trading at ₹1,52,125 after declining 0.27% for the June 5th maturity period, as reported by Goodreturns. Silver futures, set to expire on July 3rd, are trading in the green at ₹2,62,466 per kg, up by 0.21%. Latest data shows MCX silver trading at ₹2,61,700 per kg, down by ₹222 or 0.08%, near its intraday low of ₹2,60,986 per kg. In the early trade, silver traded higher to hit an intraday high of ₹2,64,922 before erasing gains. On the global front, spot silver erased early gains to trade below the $80 per ounce level, as reported by CNBC TV18. In the domestic market, MCX silver also declined by nearly ₹1,000 in early trade before stabilising, reflecting weakness in international bullion. Both cities follow IBJA (India Bullion and Jewellers Association) benchmarks, with final retail prices set each morning by local sarafa associations.
Despite the price decline, India's investment demand for gold surged 52% year-on-year during the March quarter to 82 metric tons, surpassing jewellery demand for the first time on record, according to the World Gold Council. Globally, gold demand rose 2% year-on-year to 1,230.9 metric tons during the first quarter of 2026. However, gold demand stayed subdued in India as higher prices discouraged retail buying ahead of the wedding season, with dealers offering discounts of up to $15 per ounce over official domestic prices. April gold imports are expected to fall to a near 30-year low of around 15 metric tons due to unexpected tax-related disruptions for banks. In contrast, China maintained firm premiums between $14 and $20 per ounce, supported by safe-haven demand, while China's March silver imports surged to a record 836 metric tons, nearly three times the historical March average. As per CNBC TV18, domestic bullion mirrored global weakness, with traders also watching currency movement and crude oil volatility for further direction. Analysts said Indian investors will closely track upcoming US inflation data and Federal Reserve commentary, which could determine near-term movement in gold and silver.
