Gold and Silver Prices in India on May 22: Current Retail Rates for 24K and 22K Gold in Major Cities

Precious Metal Prices Trade Lower Amid Ongoing War in Iran and Elevated Oil Prices

Precious metal prices traded marginally lower in early May 22 trade, as the ongoing war in Iran and elevated oil prices continue to exert downward pressure on the market. The gains were capped by a stronger dollar, which further reduced the appeal of precious metals.

The international spot gold traded 0.38 percent lower to $4,525.10 per ounce, while silver edged 0.24 percent down to $76.55 per ounce in early Comex trade. In the domestic market, the spot gold closed Thursday's MCX session at Rs 1,57,838 per 10 grams of 24-karat purity.

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Market participants are closely watching crude oil movement, rupee volatility, and ongoing US-Iran developments, which remain the key drivers for bullion sentiment. Analysts note that the sharp rupee recovery towards 96.15, up around 0.68%, created pressure on domestic bullion prices, reducing the impact of international gold prices on MCX.

According to Jateen Trivedi, VP Research Analyst (Commodity & Currency) at LKP Securities, the technical support for gold is seen near Rs 1,58,000, while resistance remains around Rs 1,61,500.

Gold prices vary as per purity, with 24-karat gold trading at Rs 1,57,838 per 10 grams, 22-karat gold at Rs 1,57,200 per 10 grams, and 18-karat gold at Rs 1,55,600 per 10 grams.

In the short-term, market reactions may be bullish for domestic bullion prices, with Ruchit Thakur, Market Analyst at VT Markets, estimating that gold and silver in India may temporarily outperform international prices due to the additional duty premium. However, demand for jewellery may slow as higher prices may negatively impact wedding demand, retail jewellery purchases, and small-ticket buyers.

Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities

Thakur also notes that some investors may switch from physical jewellery to gold ETFs, silver ETFs, and digital bullion due to higher manufacturing fees and taxes. The Augmont Bullion report (May 21) noted that gold fell below $4,500, and silver slipped under $75, as rising US-Iran tensions kept inflation risks and rate-hike prospects at the forefront of investor sentiment.