Precious metals came under significant selling pressure on May 4, 2026, with both gold and silver futures on the Multi Commodity Exchange declining sharply. Gold June futures were trading at ₹1.50 lakh per 10 grams, down 0.6% or ₹889 from the previous close, while silver July futures slipped to ₹2.50 lakh per kilogram, shedding 0.08%. The declines were more pronounced than earlier sessions, with gold futures falling 0.6% or ₹889 compared to the previous day's modest 0.15% decline. In international markets, spot gold was trading around $4,593.42 per ounce, down 0.5% or $21.7, as per Motilal Oswal Financial Services.
The dollar index climbed by nearly 0.20%, continuing to weigh on precious metals as a stronger greenback makes both gold and silver expensive for buyers in overseas currencies, as reported by Motilal Oswal Financial Services. This development contrasts with the previous session's decline, where the dollar index traded cautiously above 98 and provided mixed signals for gold prices. A softer greenback typically lends support to precious metals, which are priced in US dollars, but the recent strength has capped gains for both gold and silver. Higher crude prices have strengthened expectations that interest rates may stay elevated for a longer period, with the possibility of additional tightening later in the year. This outlook has supported the US dollar as well as Treasury yields, both of which moved higher during the session and weighed on precious metal prices.
Rising oil prices continue to fuel inflation concerns, reducing the likelihood of a rate cut and, in turn, putting pressure on gold prices. The Indian rupee depreciated by 11 paise to 94.95 against the US dollar in early trade on Monday, as ongoing tensions in the Middle East continued to weigh on market sentiment, according to ET Now. Elevated oil prices add a layer of complexity, with West Asia tensions and shipping disruptions through the Strait of Hormuz pushing energy costs higher, fuelling inflation concerns. On one reading, inflation should support gold as a store of value; on another, central banks responding to that inflation with tighter policy take away the rate-cut tailwind that drove much of gold's earlier rally. The market is currently pricing in the second interpretation, with Brent Crude prices continuing to trade near $113 per barrel, shattering investor risk appetite.
Tensions between the US and Iran have risen even as possible talks between them remain stalled, with uncertainty persisting as Iran reportedly submitted a revised peace proposal through Pakistan, but the US has publicly flagged dissatisfaction with the terms, keeping resolution prospects uncertain, according to Motilal Oswal Financial Services. However, Trump expressed dissatisfaction with the proposal, keeping markets on edge, while Iran reiterated its control over the Strait of Hormuz, sustaining risks to global oil supply. The US military had previously destroyed six Iranian small boats and intercepted cruise missiles and drones aimed at disrupting a renewed American push to reopen the key shipping route. Comments from a senior Iranian lawmaker describing US involvement in the Strait as a breach of a fragile ceasefire added to geopolitical concerns, keeping investors wary and markets on edge. The absence of a clear de-escalation path is maintaining a baseline of risk premium in oil, which in turn bleeds into commodity market sentiment more broadly.
City-wise gold prices across India showed uniform decline with 24-carat gold rates ranging from ₹1,48,357 to ₹1,52,730 per 10 grams across major cities including Delhi, Mumbai, Chennai, Bengaluru, and Kolkata, as per ET Now. 22-carat gold prices were quoted between ₹1,35,895 to ₹1,40,000 per 10 grams, while 18-carat gold rates ranged from ₹1,11,268 to ₹1,16,800 per 10 grams. The India Bullion and Jewellers Association (IBJA) sets the daily "base price" of gold in India, which serves as the national benchmark for bullion rates. Market analysts suggest that precious metals on Indian exchanges dipped in early May 4 trade, with MCX gold futures down 0.6%, as hawkish signals from major central banks, a firmer US dollar, and muted risk appetite from geopolitical uncertainty combined to keep bullion near recent lows. Near-term direction for gold and silver will be shaped by incoming macroeconomic data, with market participants watching PMI readings from major economies and US labour market numbers, as both carry direct implications for central bank policy paths.
