Gold prices in India have shown signs of recovery after experiencing their most severe decline in recent weeks, with gold futures for June 2026 delivery gaining ₹611 to ₹1,49,950 per 10 grams on Tuesday, as reported by The Economic Times. This represents a recovery from the previous session where gold slipped 1.3%, marking a significant turnaround from the ₹31,000 decline from record highs that occurred earlier. 24 karat gold had dropped ₹440 to ₹1,49,180 per 10 grams during the crash, while 22 karat gold declined ₹400 to ₹1,36,750 per 10 grams. The current recovery reflects gold's support in the $4,500-4,470 range and resistance at $4,574-4,610 per troy ounce globally, with MCX gold having support at ₹1,48,400-1,47,700 and resistance at ₹1,50,100-1,50,850. Spot gold rose 0.5% to $4,541.39 per ounce in early global trade, recovering after dropping more than 2% to its lowest level since March 31.
Silver rates in India opened largely unchanged with MCX silver futures for July 2026 delivery declining ₹632 to ₹2,43,263 per kg, as reported by The Economic Times. Per kilogram of silver became cheaper at ₹2,55,000 per kilogram, continuing to mirror the broader weakness in precious metals markets. Silver futures had crashed ₹9,824 per kilogram to ₹2,41,113 in the previous session, with silver ending 3% lower while gold slipped 1.3%. The precious metal remains about ₹1.65 lakh below its all-time high, with silver having support at ₹2,41,000-2,38,800 and resistance at ₹2,46,600-2,50,000 on MCX. Spot silver gained 0.4% to $73.03 per ounce globally, showing some recovery from previous lows. However, MCX silver recovered heavy losses and traded higher to reclaim the ₹2.40 lakh mark as the market neared closing, indicating a mixed performance across different trading sessions.
Iran launched attacks in the Gulf on Monday in response to the U.S. move, as both sides vie for control of the Strait of Hormuz, a crucial route that typically carries around 20% of global oil and gas supply each day, according to The Economic Times. US forces repelled Iranian attacks while escorting two US-flagged vessels through the Strait of Hormuz, while the UAE reported intercepting cruise missiles launched by Iran and attributed a major fire at its Fujairah port to an Iranian drone strike, as per Trading Economics. These developments followed President Trump's plan to restore shipping through Hormuz and support stranded vessels, although shipowners remain cautious amid elevated security risks. Elevated crude oil prices and global uncertainty kept markets volatile, with oil hovering above $110 per barrel, raising inflation fears. Further, oil hovers above $110 per barrel, raising inflation fears, which in turn raises the likelihood of higher interest rates. Although gold is traditionally seen as a hedge against inflation, higher interest rates reduce its appeal by making yield-bearing assets more attractive. The rebound in the US dollar index to 98.4 is also impacting metals rally, making dollar-denominated commodities more expensive for holders of other currencies.
Global physically backed gold exchange-traded funds (ETFs) drew $6.6 billion in April, reversing March's heavy outflows of a record $12 billion, according to latest data. Gold prices stabilized after slipping 1.12% in April, following a 13% decline in March - its sharpest monthly drop since 2008. Year-to-date, global gold ETFs have recorded $19 billion in net inflows, with total assets under management rising 1% month over month to $615 billion and collective holdings increasing by 45 tonnes to 4,137 tonnes, the third-highest level on record. All regions contributed to April's recovery, with European funds adding $3.7 billion, Asian funds $1.8 billion, and North American funds $1 billion. The return of inflows suggests gold's role as a portfolio anchor has not faded, though whether the recovery holds depends on Middle East tensions and expectations for Federal Reserve rate hikes.
China has remained a consistent gold buyer even through the war-driven volatility, with the People's Bank of China (PBoC) adding over 8 tonnes of gold in April, extending its buying streak to 18 consecutive months. The PBoC's April purchase was its largest monthly addition since December 2024, taking total holdings to roughly 2,322 tonnes. The April figure follows 5 tonnes added in March, together representing China's largest two-month accumulation since the first quarter of 2025. Year-to-date, China's central bank has bought +15 tonnes of gold, on track for its biggest annual purchase since 2023. Since 2022, the country has officially increased its gold holdings by +372 tonnes, or +19%, making China one of the strongest gold buyers in the world. China is buying the dip in gold, according to market analysts, with the April rebound suggesting continued institutional demand despite geopolitical uncertainties.
