Gold and Silver Prices on May 19: Retail Rates in Major Indian Cities

Precious Metal Prices Trade Marginally Higher Amid Ongoing Iran War and Elevated Oil Prices

Precious metal prices experienced a marginal increase on early May 19 trade, influenced by the ongoing Iran war and elevated oil prices. However, gains were capped by a stronger dollar.

The international spot gold traded 0.02 percent higher at $4,558.90 per ounce, while silver edged 0.28 percent lower at $77.22 per ounce in early Comex trade.

In the domestic market, the spot gold closed the MCX session at Rs 1,57,392 per 10 grams of 24-karat purity on Monday. The gold futures for the June contract closed 0.07 percent lower at Rs 1,59,285 per 10 grams, and silver futures for the July contract declined 0.02 percent to Rs 2,76,600 per kilogram.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

The ongoing US-Iran developments and rupee-dollar movement continue to drive volatility across bullion markets. The Indian rupee dipped to a record low of 96.17 against the dollar on Monday, weighed down by oil prices above $110 per barrel and escalating tensions in West Asia.

Market Analysis

According to Jateen Trivedi, VP Research Analyst at LKP Securities, gold prices remained highly volatile due to the ongoing market developments. Trivedi noted that the immediate support for gold is near Rs 1,58,000, while resistance is placed around Rs 1,60,000 for the next couple of sessions.

Impact of Import Duty Hike

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

Since the Government of India doubled the import duty on gold and silver from 6 percent to 15 percent on May 13, the Augmont Bullion report noted that at MCX silver prices near Rs 2,90,000 per kg (recent high), this translates to an incremental cost burden of approximately Rs 26,100 per kg on every imported bar. The report stated that retail consumers, buyers of silver jewellery, silverware, and investment coins, will face a material pass-through of both the duty hike and the supply premium, resulting in elevated retail silver prices.

Note: The prices mentioned above are subject to change and may not reflect the current market prices.