Big Drop In Gold Rates On May 12: MCX Gold Price Falls Rs 2,424, Silver Down Too; Should You Buy On Dips?

Gold prices in India recorded sharp selling on Monday, May 12, after ceasefire agreement between the country and Pakistan, and positive sentiment over US-China trade deals. MCX gold price plunged by at least Rs 2,424 in the early trade, making it one of the biggest single-day decline of May month. Accordingly, 24-carat gold price plunged by Rs 18,000 and Rs 1,800 for 100 grams and 10 grams.

The performance tracked international gold prices that plunged owing to US-China trade talks as demand for haven assets felt a dent.

The reason why gold prices fell?

"Gold prices fell sharply in morning trades across Asian markets amid signs of progress in trade talks between the US and China, along with some relief in geopolitical tensions. Gold and silver witnessed high volatility last week and rebounded again due to the escalation in the Indo-Pak war and interest rate cuts by BOE. Gold and silver also gained after the Bank of England cut interest rates by 25 basis points. Global growth worries and investment demand are also supporting the prices of precious metals. However, the dollar index trading steady above the 100 mark, the U.S. Fed keeping interest rates unchanged and US-China trade negotiation hopes are the factors limiting gains of precious metals," Rahul Kalantri, VP Commodities, Mehta Equities said.

MCX Gold, Silver Price:

MCX gold price, with June 2025 expiry, nosedived by at least Rs 2424 to hit an intraday low of Rs 94,094 per 10 grams. At the time of writing, the bullion traded at Rs 94,244 per 10 grams, lower by 2.4%.

Meanwhile, MCX silver price, with July 2025 expiry, plunged by at least Rs 976 to hit an intraday low of Rs 95,753 per 1kg. Notably, the quantum of fall in silver was slower than compared to gold. At the time of writing, MCX silver price dipped by 0.53% or Rs 508 to trade at Rs 96,221 per 1kg.

Gold Prices In India:

100 grams gold price in 24 carats dropped by Rs 18,000 to Rs 9,68,800, while 22 carats and 18-carat gold prices tumbled by Rs 16,500 and Rs 13,500 to Rs 8,88,000 and Rs 7,26,600 respectively.

In 24 carat, 10 grams gold price plummeted by Rs 1,800 to Rs 96,880, while in 22 carat, the price dropped by Rs 1,650 to Rs 88,800. 18-carat gold price is lower by Rs 1,350 to Rs 72,600 per 10 grams.

Silver Price In India:

1 kg silver price in India declined by Rs 100 to Rs 98,900 on Monday. 100 grams and 10 grams silver prices inched lower by Rs 10 and Re 1 to Rs 9,890 and Rs 989 respectively. 1 gram of silver is Rs 98.90.

Spot Gold Price:

Gold slipped over 1% to around $3,260 on Monday, hitting a one-week low, as optimism over US-China trade talks dampened demand for safe-haven assets. Officials from both countries concluded discussions over the weekend, signalling a positive outcome, with Beijing announcing plans to launch formal negotiations and Washington highlighting progress toward a deal. Treasury Secretary Scott Bessent also said he would provide more details in a full briefing on Monday, as per Trading Economics.

Analyst predicts gold has support at $3255-3235 while resistance is at $3300-3325. Silver has support at $32.27-31.95 while resistance is at $32.90-33.70. In INR terms, gold has support at Rs95,550-94,980 while resistance is at Rs96,950-97,340. Silver has support at Rs95,880-94,550 while resistance is at Rs97,550-98,250.

Should You Buy Gold And Silver Prices On Dips?

Gold prices are expected to correct. One can sell at 95500 with a stop loss of 95900 for the target at 95000-94500, as per Nirmal Bang's technical report dated May 12.

Further, on silver, the prices are expected to correct too. Hence, the brokerage suggested traders can sell at 96500 with a stop loss of 97200 for the target 95500-94700.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.