Gold futures experienced a notable rally on Tuesday, May 12, 2026, with prices climbing ₹194 to ₹1,53,857 per 10 grams as speculators built fresh positions amid firm spot demand. According to The Hindu BusinessLine, the rise was attributed to fresh positions built up by participants in the futures market. This futures rally occurred despite Prime Minister Narendra Modi's recent appeal urging households to postpone discretionary purchases such as gold in order to conserve foreign exchange and reduce pressure on the economy.
In the spot market, domestic gold rates continued their upward trajectory with 24K gold rising by ₹54 to ₹15,413 per gram on May 12, while 22K gold increased by ₹50 to ₹14,130 per gram. As reported by Goodreturns, over the past two trading sessions, gold prices have surged by ₹16,300 per 100 grams for 24K gold. For larger quantities, 100 grams of 24K gold now costs ₹15,41,300, up ₹5,400 in a single day. The sustained price increases reflect continued investor interest despite government appeals for restraint.
On the Multi Commodity Exchange, gold contracts for June delivery traded higher by ₹194, or 0.13 per cent, at ₹1,53,857 per 10 grams with a business turnover of 1,174 lots. As reported by The Hindu BusinessLine, the futures market activity was driven by fresh positions created by participants responding to the firm spot demand. This trading activity suggests increased speculative interest in gold despite the broader market context.
In contrast to domestic gains, global gold futures fell 0.44 per cent to $4,715.16 per ounce in New York trading. According to The Hindu BusinessLine, this divergence between domestic and international markets highlights the specific factors driving Indian gold demand, including spot market strength and speculative positioning. The global decline contrasts sharply with the domestic futures rally, indicating localized market dynamics in India.
