Daijiworld Media Network - New Delhi

New Delhi, May 2: Gold prices declined by 0.81% over the week as stalled negotiations between the United States and Iran dampened expectations of near-term interest rate cuts and kept markets on edge.

On the Multi Commodity Exchange, MCX Gold June futures closed slightly higher by 0.01%, while MCX Silver May futures rose 0.49%. Gold futures are currently priced around Rs 1,51,363, and silver futures at about Rs 2,47,500 per kg.

According to data from the India Bullion and Jewellers Association, 24-carat gold prices for 10 grams fell from Rs 1,51,495 on Monday to Rs 1,50,263 on Thursday, reflecting a steady downward trend through the week.

In global markets, bullion slipped as much as 1.2% on Friday after an earlier gain, pressured by rising energy costs and stronger US Treasury yields. Overall, gold has fallen nearly 14% since the escalation of the US-Iran conflict began on February 28, 2026, according to traders.

Market participants noted that geopolitical tensions remain a key driver. Reports suggest Iran has insisted that US restrictions must be lifted before reopening discussions related to the Strait of Hormuz. While diplomatic communication continues, no clear breakthrough has been achieved, keeping risk sentiment elevated.

Inflation data added further pressure, with the US Personal Consumption Expenditures (PCE) index rising to 3.5% in March — its highest level in nearly three years — reinforcing expectations that interest rates may remain elevated for longer.

Analysts said that higher energy prices and persistent inflation could lead central banks to maintain restrictive monetary policy, which typically weighs on non-yielding assets like gold.

Crude oil also remained volatile but firm, supported by concerns over potential supply disruptions, helping sustain inflationary pressure across markets.

Precious metals, meanwhile, entered a phase of corrective consolidation after recent safe-haven-driven gains. Gold and silver saw profit booking at higher levels, although buying interest emerged near key support zones.

In international trading, COMEX gold hovered in the $4,620–$4,650 range, with resistance seen near $4,700–$4,760. COMEX silver traded above $76, with the broader outlook remaining positive but cautious in the near term, depending on breakout levels and macroeconomic signals.