Daijiworld Media Network - New Delhi

New Delhi, May 24: Gold prices recorded a marginal weekly rise of 0.19 per cent, supported by ongoing geopolitical tensions and volatility in crude oil markets, even as domestic and international cues remained mixed.

On Friday, MCX gold June futures slipped slightly by 0.06 per cent, while silver May futures declined by 0.09 per cent. In the domestic market, gold futures were quoted at around Rs 1,58,588, while silver stood at Rs 2,71,600 per kg on the Multi Commodity Exchange (MCX).

According to data from the India Bullion and Jewellers Association (IBJA), the price of 10 grams of 24-carat gold rose from Rs 1,57,821 at the start of the week to Rs 1,58,117 by Friday.

Analysts noted that gold prices softened towards the weekend as global COMEX gold stabilised near the $4,535 level, while a stronger rupee also weighed on domestic bullion rates.

Market sentiment was further influenced by reports of progress in US–Iran negotiations, which eased safe-haven demand for precious metals. However, continued uncertainty over issues such as the Strait of Hormuz has kept downside risks limited.

Experts said ongoing discussions around US–Iran proposals are helping COMEX gold hold support near the $4,500 mark, though volatility remains elevated due to unclear geopolitical outcomes.

At the same time, global demand trends are under pressure. The World Gold Council has projected that India’s gold demand could decline by around 10 per cent year-on-year, or 50–60 tonnes, in calendar year 2026 following a sharp increase in import duties.

The gold import duty was recently raised from 6 per cent to 15 per cent, marking the steepest hike on record and fully reversing a previous reduction announced in July 2024.

Going forward, analysts say gold and silver prices will remain sensitive to developments in US–Iran relations, movements in the dollar index, and fluctuations in the rupee.

Rising bond yields are also expected to act as a headwind for precious metals. The yield on 10-year US Treasury notes has climbed above 4.5 per cent, while 30-year yields remain above 5 per cent.

Market observers warn that sustained high yields could influence monetary policy expectations, including the possibility of the US Federal Reserve considering further rate adjustments by the end of 2026, increasing the opportunity cost of holding non-yielding assets like gold and silver.