Gold Price India Outlook: 24K Rally On! Will Gold Rate Today, May 26, Rise On Weak Dollar, Iran-US Talks?

Gold Price India Outlook: Prices of 24 karat, 22 karat, and 18 karat gold in India continued their upward rally on Monday, May 25. The uptick came as the precious metal maintained momentum after posting strong gains last week. Meanwhile, silver rate in India remained stable.

Monday's uptick in gold rates came amid multiple factors influencing market sentiment, including the US Federal Reserve's interest rate stance, optimism surrounding Iran-US talks, a weaker US dollar, and the recovery in the Indian rupee. As investors prepare for the next trading session, let's decode key factors that can impact gold rate in India today, ie May 26.

Gold Rate in India

The price of 24 karat gold in India increased to Rs 15,938 per gram, as per Goodreturns data at 10 pm on Monday, May 25. The rate of 22 karat gold in India also saw sharp uptick on Monday as per gram of gold category increased to Rs 14,610 on Monday. The rate of 18 karat gold in India became expensive 25 per gram to Rs 11,954 per gram.

Silver Rate in India

Silver price in India remained stable on Monday. As per Goodreturns data, silver rate in India stood at Rs 285 per gram and at Rs 2,85,000 per kilogram.

International Gold Rate

International gold rate on Monday, May 25, surged as investors reacted to improving geopolitical sentiment, and US Federal Reserve's stance on rate cut. International gold rate stood at $4,600 per ounce on Monday, as per Trading Economics data.

"Gold and silver prices saw a notable uptick today driven primarily by a weaker dollar and optimism surrounding a potential U.S.-Iran peace deal. The positive sentiment in the market was further bolstered by easing crude oil prices, with WTI crude holding steady at $96.60 per barrel," explained Gaurav Garg, research analyst at Lemonn markets desk.

Gold Price Outlook

Gold prices in India are likely to remain volatile today, with multiple factors pulling the precious metal in opposite directions. Continued recovery in the Indian rupee may put downward pressure on domestic gold prices. However, a further decline in crude oil prices, optimism over a potential Iran-US agreement, and easing concerns around inflation and interest rate hikes could provide upward support to gold rates.

"Gold in rupee terms can behave very differently from gold in dollar terms. USD/INR near 95-96 means that even if international gold consolidates, domestic prices may remain elevated because rupee depreciation cushions the fall," explained Bhavik Joshi, Business Head, INVasset PMS.