Gold surges 0.19 pc this week amid persistent geopolitical tensions
New Delhi, May 23
Gold prices rose 0.19 per cent during the week over persistent geopolitical uncertainty and sharp movements in crude prices.
On Friday, MCX gold June futures dipped 0.06 per cent while MCX silver May futures lost 0.09 per cent.
Currently, gold futures stood at Rs 1,58,588, while silver futures stood at Rs 2,71,600 per kg on the Multi Commodity Exchange (MCX).
The price of 10 grams of 24-carat gold was at Rs 1,58,117 on Friday, up from Rs 1,57,821 seen on Monday market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Towards the weekend, gold prices traded slightly weak as COMEX gold stabilised near $4535, with strong rupee appreciation adding pressure on domestic bullion prices, an analyst said.
Media reports about progress in US-Iran negotiations eased precious metals buying, though unresolved tensions around the Strait of Hormuz provided near-term support.
Positive signals around ongoing US-Iran proposal discussions are helping COMEX gold hold support near the $4500 zone, though uncertainty around the final outcome continues to keep volatility elevated, he added.
India's gold demand is expected to dip 10 per cent YoY or by 50-60 tonnes in CY 26, following the import duty hike, according to a report from World Gold Council.
The gold import duty was raised sharply from 6 per cent to 15 per cent, marking the single-largest increase on record, fully reversing the duty cut of July 2024.
Going ahead, gold movement will continue to depend on US-Iran developments, dollar index movement, and rupee volatility.
Higher bond yields represent headwinds for gold and silver in the near term. The yield on 30-year U.S. Treasuries is holding above 5 per cent, and the yield on 10-year notes is ending the week above 4.5 per cent.
Rising bond yields could prompt the US Federal Reserve to raise interest rates by CY26 end, raising the opportunity cost of holding non-yielding assets like gold and silver.
— IANS
Reader Comments
This duty hike from 6% to 15% is brutal! Makes gold less affordable for ordinary people like us. The government should consider easing import duties instead of squeezing consumers.
Geopolitical tensions never seem to end. Iran, Ukraine, Strait of Hormuz... it's like the world is on edge constantly. Gold is my safety net. Stay safe, everyone!
The rupee appreciation is good for imports, but our gold prices are still high due to global factors. Can't win either way. India needs to strengthen its economy to reduce reliance on foreign markets.
Silver is looking interesting too at 2.71 lakh per kg. Might be a good time to diversify into silver instead of piling all savings into gold. What do you think?
The World Gold Council report on demand dip is concerning. Import duty hikes might protect domestic producers but hurt consumers. Wish the government had more balanced policy.
With bond yields rising and Fed likely to hike rates, gold might face headwinds soon. But let's be real, nothing beats gold for Indian weddings and festivals! 😍
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.