Gold, Silver Rate Today Highlights: Gold, silver prices rise marginally amid rising geopolitical tensions

Gold remains range-bound as markets reassess US interest rate expectations, with global brokerages scaling back the likelihood of multiple rate cuts this year amid sticky inflation and cautious central bank policy signals. A higher-for-longer rate environment continues to weigh on bullion, as elevated yields increase the opportunity cost of holding non-yielding assets.

Near-term direction is expected to hinge on US inflation data and shifting Fed policy cues, which will determine whether rate-cut expectations revive or fade further. At the same time, investors are closely tracking President Donald Trump’s visit to China and his meeting with President Xi Jinping, where discussions on Iran, Taiwan, AI and nuclear issues could influence broader risk sentiment and drive safe-haven demand for gold.

Gold remained volatile as traders balanced short-covering and bargain buying with caution ahead of key US inflation readings this week, while geopolitical tensions added to uncertainty.

Market participants are positioning ahead of the US CPI data due Tuesday and the Producer Price Index (PPI) scheduled for Wednesday, which are expected to guide the Federal Reserve’s next policy cues. “There is just some bargain hunting coming in and positioning ahead of the US inflation data this week,” said Jim Wyckoff, market analyst at American Gold Exchange.

Sentiment was also shaped by rising Middle East tensions after President Donald Trump rejected Iran’s response to a US peace proposal, raising fears that the prolonged conflict could disrupt shipping through the Strait of Hormuz and keep oil prices elevated.

“Markets are largely focused on expectations around the strait, particularly whether it will reopen, and are digesting the broader scenario of higher energy prices,” said Daniel Pavilonis, senior market strategist at RJO Futures. (Reuters)

Gold prices reversed early losses to trade slightly higher on Monday amid volatile moves, as investors assessed developments in US-Iran diplomacy and positioned ahead of key US inflation data due later this week.

Spot gold rose 0.3% to USD 4,730.49 per ounce as of 10:20 a.m. EDT (1420 GMT), after falling more than 1% earlier in the session, reflecting choppy sentiment in global bullion markets.

Gold prices came under pressure in global trade, even as geopolitical tensions around US-Iran negotiations continued to influence sentiment. In international markets, spot gold fell over 1 per cent to USD 4,661.68 per ounce, while silver also traded marginally lower at USD 80.28 per ounce.

“Silver saw a slight uptick, benefiting from steady retail demand amid the approaching wedding season,” said Gaurav Garg, Research Analyst at Lemonn Markets Desk.

However, gold remained weak as investors reacted cautiously to developments around US-Iran peace proposals, with reports indicating renewed rejection of terms and fears of possible escalation.

“Gold traded slightly weak as markets reacted cautiously to negative developments around the US-Iran peace proposals, with reports suggesting renewed rejection of terms and rising fears of re-escalation in the conflict,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

He added that ongoing uncertainty has kept global risk sentiment under pressure, while rising crude oil prices are again stoking inflation concerns across markets.

Gold prices fell by Rs 600 to Rs 1,55,300 per 10 grams on Monday, according to the All India Sarafa Association, as renewed uncertainty around US-Iran negotiations weighed on global sentiment.

“Gold came under pressure on Monday as fresh setbacks in US-Iran negotiations renewed uncertainty across global markets,” said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.

The rejection of the latest proposals by both sides reignited fears of a prolonged conflict, pushing crude oil prices higher and reviving inflation concerns. The development also strengthened expectations of tighter monetary policy by major central banks, including the US Federal Reserve.

MCX silver futures extended gains in late trade on 11 May 2026, with the July 2026 contract surging 6.15% to Rs 2,78,019 per kg amid strong momentum buying and heavy trading volumes. The contract touched an intraday high of Rs 2,79,437 after opening at Rs 2,64,535 and hitting a low of Rs 2,60,986 earlier in the session.

The September 2026 contract jumped 5.83% to Rs 2,83,089, while the December contract remained higher by 3.21% at Rs 2,85,054. Market activity stayed concentrated in the July series, where volumes crossed 16,700 lots, reflecting sustained bullish sentiment in silver counters.

MCX gold futures recovered sharply in late trade on Monday reversing earlier weakness as fresh buying lifted prices across key contracts. The June 2026 contract climbed 0.68% to Rs 1,53,574 per 10 grams after moving between Rs 1,51,500 and Rs 1,54,434 during the session.

The August contract gained 0.73% to Rs 1,57,120, while October futures rose 0.66% to Rs 1,60,074. Trading activity remained concentrated in the June series, with volumes crossing 7,100 lots and open interest at 9,315 lots, indicating strong participation amid the rebound.

Gold prices fell Rs 600 to Rs 1.55 lakh per 10 grams in the national capital on Monday after US President Donald Trump rejected Tehran's response to Washington's peace proposal, raising fears of renewed conflict in West Asia and pushing crude oil rates higher.

Shares of major jewellery companies including Titan, Senco Gold, and Kalyan Jewellers fell sharply by 6–9% on Monday amid fears of a potential sharp increase in gold import duties. Market participants said concerns over tighter import restrictions triggered broad-based selling in the counter.

However the governemnt sources clariefied that govt is not considering duty hike.

“There are concerns that the government might sharply increase import duty on gold for a year to discourage imports,” said Surendra Mehta, national secretary at the India Bullion and Jewellers Association. “Duties could be raised even higher than levels seen in recent years,” he added, as quoted Reuters.

MCX gold futures on Monday traded lower extending a mild corrective tone amid profit booking after recent strength. The June 2026 contract saw intraday volatility between Rs 1,54,434 and Rs 1,51,500 before settling at Rs 1,51,939, indicating selling pressure at higher levels. August futures followed a similar pattern, oscillating between Rs 1,57,191 and Rs 1,55,000 and ending at Rs 1,55,394, while October remained largely steady at Rs 1,58,639 with minimal movement.

Amid concerns over India's rising import bill and pressure on foreign exchange reserves, government sources on Monday clarified that there are currently no plans to impose restrictions on the use of international cards or raise import duties on precious metals, even as Prime Minister Narendra Modi on Sunday, stressed the need to reduce dependence on imported commodities such as fuels, gold jewellery and overseas spending.

Commerce Ministry sources said, "At present, there are no import restrictions on cards," dismissing speculation around possible curbs on international transactions to contain foreign exchange outflows.

The sources further stated that there are "no plans to hike tariff on gold and silver" at this stage, signalling that the government is not considering immediate fiscal measures on precious metal imports despite concerns over rising purchases.