Gold Rate in India Outlook, May 22: 24K, 22K, 18K Prices Soar In 3 Days; Will Friday Fuel Fourth Hike?

Gold Rate Outlook: The prices of 24 karat, 22 karat, and 18 karat gold in India continued their upward momentum for the third consecutive session on Thursday, May 21. Silver prices in India also followed the trend despite weakness in global commodity markets. While the Indian Rupee showed signs of recovery, fading hopes of Iran-US peace talks after Iran reiterated its stance on not transferring uranium reserves outside the country kept global uncertainty in focus.

As investors prepare for Friday's trading session, let's understand key factors that may define gold price outlook for May 22.

Gold Rate in India

The price of 24 karat gold in India surged by Rs 49 per gram to Rs 15,993 per gram on Thursday, May 21, as per Goodreturns data. Thursday's surge marked the third consecutive jump in gold prices in India this week. The rate of 22 karat gold in India jumped by Rs 45 per gram to Rs 14,660 per gram on May 21. Likewise, the rate of 18 karat gold in India increased by Rs 37 per gram to Rs 11,995 per gram.

Silver Rate in India

The price of silver in India also rallied on Thursday. Silver rate in India jumped to Rs 285 per gram and to Rs 2,85,000 per kilogram on Thursday, May 21. Silver prices in India and world are seeing range bound movement over the past two months, after the precious metal had a roller coster ride in January and February.

International Gold Rate

While domestic gold prices surged on Thursday, international gold rate fell close to $4,500 per ounce on Thursday, as per Trading Economics data. The recent dip came as expectations of Iran-US peace deal faded due to Iran's fresh statement. Iran's Supreme Leader Ayatollah Mojtaba Khamenei reportedly issued directive orders to keep the country's uranium on Iranian soil, a move that defies US President Donald Trump's condition.

Gold Price Outlook, May 22

Gold rate in India today, May 22, is likely to trade in a range-bound manner. A recovery in the Indian Rupee and weakness in global commodity prices may put some pressure on domestic gold rates, potentially leading to a mild correction in prices.

In the long-term, gold rate in India may see slow and steady rise as the precious metal's safe-haven demand and geopolitical uncertainty may fuel its prices.

"We expect gold prices to consolidate in the near term, amid mixed macro signals-"higher for longer" US rates, a stronger dollar, and elevated bond yields. Short term volatility of around ±5% is likely. Geopolitical developments, particularly around the US-Iran conflict, could keep prices volatile with on off ceasefire headlines. For Indian investors, rupee depreciation should cushion the downside, keeping domestic gold prices in a tighter range versus international markets," stated Mutual Fund report.