Gold Rate in India Crash Continues! Spot Gold At Month Low, Silver Down Too | Will Prices Fall? May 6 Outlook

Gold Rate in India: The price of 24 karat, 22 karat and 18 karat gold in India continued to fall for the third consecutive session on Tuesday, May 5. Meanwhile, spot gold dipped to its one-month low, but later made some recovery. Silver rate in India also followed the trend and declined in the day.

The decline in gold prices in India comes amid heightened volatility in the international bullion market, driven by ongoing US-Iran tensions and their ripple effects across global markets. Rising crude oil prices, a stronger US dollar, and fluctuations in global equities have added pressure on precious metals. As we head into the next trading session on Wednesday, May 6, these macroeconomic and geopolitical factors are expected to play a key role in shaping gold and silver price movements in India.

Gold Rate in India

The price of 24 karat gold in India declined on Tuesday, May 6, as per Goodreturns data. The rate of 24 karat gold in India fell by Rs 44 per gram to Rs 14,918 per gram on Tuesday, May 6. The rate of 22 karat gold in India declined by Rs 40 per gram to Rs 13,675 per gram. Similarly, the rate of 18 karat gold in India fell by Rs 33 per gram to Rs 11,189 per gram.

Silver Rate in India

The silver rate in India also saw a marginal decline. Silver price in India fell to Rs 255 per gram on Tuesday, May 5. Whereas, per kilogram of silver in India became cheaper to Rs 2,55,000 per kilogram.

Spot Gold Hits To One-Month Low

Spot gold hit to its one-month low mark on Monday, May 4, amid persistent tensions and concern due to Iran-US war developments and uncertainty over their ceasefire plan.
Spot gold touched its one-month low mark on Monday, but later saw some recovery. It was up 0.8% at $4,557.56 per ounce at 1:31 p.m. EDT (1731 GMT), as per Reuters data.

Gold Price Outlook For May 6

Gold prices in India are expected to trade in a range-bound manner on Wednesday, May 6. However, domestic rates may see a slight upward bias during the session, tracking a modest recovery in the international bullion market.

In the long-term, gold price in India is likely to remain volatile with crude oil prices, US Dollar movement and Indian Rupees performance defining its trajectory. "We are seeing some bargain hunting after the ​recent selloff, and oil prices easing are also providing support. The market ⁠is going to continue to watch the headlines, but we could see focus shift a little ​towards economic data,.Gold bulls need a significant ​fundamental spark to regain their footing," Reuters quoted Jim Wyckoff, market analyst at American Gold Exchange.