Gold and Silver Prices Decline in India Amid Global Uncertainty; Rates Remain Below ₹1.5 Lakh
Gold and Silver Prices Decline in India Amid Global Uncertainty; Rates Remain Below ₹1.5 Lakh
Gold and silver prices in India saw a noticeable drop at the beginning of the week, with bullion rates falling across major cities on May 5, 2026. The price of 24-karat gold stood at approximately ₹1,49,830 per 10 grams, while 22-karat gold was around ₹1,37,344 per 10 grams, marking a decline of nearly ₹2,000. Silver prices also dropped significantly by about ₹7,000 in metro cities, with rates at ₹2,44,230 per kilogram for fine silver.
Chennai recorded the highest gold prices among major cities, followed by Hyderabad, Bengaluru, and Mumbai. In the derivatives market, gold futures for June delivery showed a slight recovery, rising by ₹611 to ₹1,49,950 per 10 grams. On the other hand, silver futures for July delivery continued to decline, falling by ₹632 to ₹2,43,263 per kilogram.
On the Multi Commodity Exchange (MCX), gold had previously settled at ₹1,49,350 per 10 grams, while silver closed at ₹2,44,001 per kilogram. Earlier trading sessions saw gold fall by about 1.3% and silver decline nearly 3%, reflecting ongoing market volatility.
The drop in domestic bullion prices is largely attributed to global geopolitical tensions, particularly in the Middle East, involving the United States and Iran. These developments have contributed to uncertainty in commodity markets, influencing inflation concerns and raising the possibility of interest rate hikes.
In the international market, gold prices hovered near $4,500 per troy ounce on May 5, showing a slight recovery after a recent decline. Although prices have slipped around 2.4% over the past month, they remain significantly higher compared to last year.
Market analysts expect gold prices to remain range-bound in the near term, as factors such as geopolitical developments, central bank buying trends, currency movements, and overall global economic conditions continue to drive fluctuations.
