Gold prices in India experienced a significant reversal on Friday, with 24 karat gold closing 0.04% higher at ₹1,52,589 per 10 grams despite international spot gold trading 0.82% lower at $4,692 per ounce. The domestic rally came after 24 karat gold had surged by ₹87 per gram to ₹15,300 per gram in the previous session, marking a sharp decline from the recent highs. This stalled momentum follows the precious metal's third consecutive session rally on Thursday, May 7, when gold prices had extended their rally with 22 karat gold rising by ₹80 per gram to ₹14,025 per gram and 18 karat gold gaining ₹61 per gram to ₹11,475 per gram. On MCX, June 2026 futures had risen ₹304 to ₹1,52,436 per 10 grams with traded value crossing ₹10,161 crore, while August 2026 contract had gained ₹288 to ₹1,55,886 per 10 grams.
According to Trading Economics data, gold moved above 4,700 USD per troy ounce on May 7, 2026, as traders reacted to easing inflation fears and falling oil prices. The move followed reports of a possible US-Iran understanding that could end recent conflict and support a gradual reopening of the Strait of Hormuz. Spot prices hit 4,709.48 USD/t.oz, up 0.38% from the previous session, with gold remaining 42.01% higher than a year earlier despite recent volatility. Spot gold gained 1.2% to $4,745.08 per ounce as of 1216 GMT, after rising to its highest since April 23, while US gold futures for June delivery rose 1.3% to $4,754.20. Benchmark US Treasury yields eased and the dollar hovered near a more than two-month low, making bullion cheaper for holders of other currencies. However, silver inched 0.73% higher at $81.45 per ounce on Comex amid uncertainty over the Iran conflict, elevated oil prices and a firmer dollar.
India's Prime Minister Narendra Modi on Sunday (May 10) urged citizens to postpone gold purchases due to uncertainty over the West Asia conflict continuing to escalate, elevated oil prices, and a firmer dollar. The prime minister has also called for reduced fuel consumption, increased use of public transport and electric vehicles, a revival of work-from-home practices, and support for domestic products. With the ongoing Iran war and the blockade of the Strait of Hormuz, analysts say that policymakers are looking to curb non-essential imports, such as gold, which accounts for nearly 9% of India's import bill after crude oil. According to the Augmont Bullion report, despite ongoing tensions in the Strait of Hormuz, investor sentiment leans toward diplomatic resolution, which has pushed crude oil prices, reducing inflationary pressure and lowering expectations of a more aggressive Fed stance.
Silver rate in India also saw an uptick in the last two days, as reported by Goodreturns. The precious metal's performance has been closely linked to gold's rally, with silver meeting the $78 (~₹2,56,000) upside target and subsequent resistance levels standing at $80 (₹2,60,000) and $82 (₹2,65,000). On MCX, July 2026 futures surged ₹9,225 to ₹2,62,490 per kg with traded value crossing ₹4,244 crore, while September 2026 contract gained ₹8,812 to ₹2,67,500 per kg. Silver prices also strengthened in Mumbai's physical market, trading at ₹2.46 lakh per kilogram, around ₹6,000 higher than Tuesday's level. According to the Augmont Bullion report, silver has met the $80 (Rs 2,60,000) and $82 (Rs 2,65,000) upside targets, and prices are expected to consolidate before moving higher towards $85 (Rs 2,70,000).
According to Augmont Bullion Daily report, gold has recovered from the $4,500-4,550 (~₹1,49,000) support zone with resistance now targeted at $4,800-4,850 (~₹1,55,000). The precious metal is likely to showcase range-bound movement on Friday, as it will reflect the previous session's surge in the international gold market. In the long-term, precious metal is likely to see a strong trajectory, with some mild correction expected in short-term. Vedika Narvekar from Anand Rathi noted that gold prices recovered mainly because of buying at lower levels along with some moderation in crude oil prices as concerns surrounding the Strait of Hormuz appeared to ease slightly. However, she cautioned that gains may remain limited as geopolitical uncertainty has not fully faded. Going forward, the bullion price is expected to be largely driven by global developments, with the progress or deterioration of US–Iran negotiations remaining a key factor to monitor, given its significant implications for geopolitical stability and the potential impact on crude oil price volatility.
