Gold and Silver Prices Remain Stable Across Major Indian Cities on May 26

Gold Prices See Slight Gains Amid Ongoing US-Iran Tensions

Precious metal prices traded marginally higher in early trade on May 26, as the ongoing war in Iran continues to impact global markets. The softer oil prices and a weaker dollar are also contributing to the increase in international gold prices.

According to recent market data, the international spot gold traded 0.24 percent higher to $4,534.10 per ounce, while silver inched 0.99 percent higher to $76.95 per ounce over the last 24 hours in early Comex trade.

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

The gold futures for the June contract on the Multi Commodity Exchange (MCX) closed the Monday session 0.04 percent lower to Rs 1,59,025 per 10 grams, and silver futures for the July contract edged 0.11 percent to Rs 2,76,400 per kilogram.

Market participants are closely watching crude oil movement, rupee volatility, and ongoing US-Iran developments, which remain the key drivers for bullion sentiment. The strong rupee appreciation is limiting the upside in MCX bullion prices, while optimism surrounding a possible US-Iran agreement and hopes of easing tensions in the Strait of Hormuz are continuing to support global bullion sentiment.

Technically, gold support is seen near Rs 1,58,500, while immediate resistance remains around Rs 1,60,500, according to market analysts.

Key Factors Influencing Gold Prices

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

Market analysts are closely monitoring various factors that could impact gold prices, including crude oil movement, rupee volatility, and ongoing US-Iran developments. According to Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, gold prices fell in Asian trade, reversing part of the previous session's gains after fresh US strikes on Iranian targets revived fears of a prolonged conflict in the Middle East.

The renewed escalation pushed crude oil prices higher after a week of declines, reigniting concerns over energy-driven inflation and keeping markets cautious. Focus now shifts toward the upcoming US GDP and inflation-related data later this week.

A rebound in oil prices also supported the US dollar, which remained relatively firm as investors continued to view the greenback as a safer asset amid geopolitical uncertainty. Higher oil prices have fueled expectations that global central banks may maintain a hawkish stance or even consider further rate hikes to combat inflation, a trend that continues to weigh on non-yielding assets such as gold.