Gold Rate in India Falls As PM Modi Calls To Cut Gold Buy; Silver Stable | Will Prices Rise on May 12? Outlook

Gold Rate in India: Gold prices in India declined on Monday, May 11, after Prime Minister Narendra Modi urged citizens to avoid gold purchases amid concerns arising from the ongoing United States-Israel-Iran conflict and delay in negotiations. The decline marked the precious metal's third fall in the last five trading sessions. Meanwhile, silver prices in India remained largely stable. Notably, the weakness in domestic gold prices came despite a rally in international gold markets.

The recent volatility in gold and silver prices has kept investors on edge, with sentiment influenced by developments around Iran-US negotiations, concerns over potential disruptions in the Strait of Hormuz, rising crude oil prices, and weakness in the US dollar. As markets gear up for Tuesday's trading session (May 12), here's a closer look at how gold and silver prices in India are likely to move and the key factors that could shape their trajectory.

Gold Rate in India

The price of 24-karat gold in India declined by close to Rs 22 per gram on Monday, May 11, to Rs 15,213 per gram. Likewise, the price of 22 karat gold in India fell by Rs 20 per gram to Rs 13,945 per gram. The rate of 18 karat gold in India fell by Rs 16 per gram to Rs 11,410 per gram.

Silver Price in India

The price of silver in India remained stable on Monday. The precious metal was priced at Rs 275 per gram and at Rs 2,75,000 per kilogram on Monday, May 12.

Gold, Silver MCX

MCX gold June futures ended Monday's trading session with 0.06% gains at Rs 1,53,750 per 10 gram. MCX silver July futures closed marginally lower with 0.01% loss at Rs 2,78,274 per kilogram.

International Gold Rate Today

International gold rate on Monday edged higher and remained close to its three-week high mark. International gold rate today stood at $ 4,730 per ounce on Monday, as per Trading Economics. The surge in gold prices came as investors remained hopeful of positive development related to US-Iran negotiations.

Gold Price Today Outlook (May 12)

Gold rate today in India is likely to remain volatile with some upward bias as precious metal remained firm in the international bullion market. However, any further surge in brent crude or any fresh correction can impact gold price today.

In the long-term, gold prices are likely to move in a range-bound manner as different factors impact the yellow metal's trajectory. "There are currently conflicting demands for gold as a safe haven because of central bank purchases, rising oil prices, fiscal instability, and geopolitical concerns. A strong US dollar, high real rates, and declining prospects of a short-term Fed decrease are examples of macroeconomic problems. This tug-of-war explains why gold has stayed remarkably range-bound despite a very tense global background," explained Ruchit Thakur, Market Analyst, VT Markets.