Gold Prices Decline by 0.82% to $4,692, Silver Prices Rise 0.82% on Comex as Market Awaits MCX Update

Global Market Uncertainty Weighs on Gold Prices

The international spot gold market experienced a downturn, trading 0.82 percent lower at $4,692 per ounce on early Comex trade. Meanwhile, silver prices inched 0.73 percent higher at $81.45 per ounce. This fluctuation in prices comes amid uncertainty surrounding the Iran conflict, elevated oil prices, and a firmer dollar.

In the domestic market, the futures price of gold closed the Friday session 0.04 percent higher at Rs 1,52,589 per 10 grams on MCX. Silver, on the other hand, traded 1.34 percent higher on the same platform.

The bullion price is expected to be largely driven by global developments, particularly the progress or deterioration of US–Iran negotiations. These negotiations have significant implications for geopolitical stability and the potential impact on crude oil price volatility.

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

Gold Prices Vary by Purity

The price of gold varies according to purity. Here's a comparison of the price movement of 10 grams of 24-karat, 22-karat, and 18-karat gold:

Government Intervention and Analysts' Predictions

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

India's Prime Minister Narendra Modi has urged citizens to postpone gold purchases due to the ongoing uncertainty over the West Asia conflict, elevated oil prices, and a firmer dollar. The prime minister has also called for reduced fuel consumption, increased use of public transport and electric vehicles, a revival of work-from-home practices, and support for domestic products.

Analysts note that policymakers are looking to curb non-essential imports, such as gold, which accounts for nearly 9 percent of India's import bill after crude oil. According to the Augmont Bullion report (May 8), investor sentiment leans toward a diplomatic resolution to the Iran conflict, pushing crude oil prices lower and reducing inflationary pressure.

Market Predictions

The Augmont Bullion report estimates that the next target resistance for gold is at $4,800–4,850 (Rs 1,55,000). Silver, which has already met its upside targets of $80 (Rs 2,60,000) and $82 (Rs 2,65,000), is expected to consolidate before moving higher towards $85 (Rs 2,70,000).