Gold, Silver Rate Highlights: Gold prices set for second straight week of decline

India's gold demand is expected to contract by 50-60 tonnes this calendar year, around 10 per cent lower than the previous year, following the import duty hike, according to the World Gold Council (WGC).

"Looking at 2026 as a whole, we estimate that combined jewellery and bar and coin demand could decline by around 50-60 tonnes, around 10 per cent lower than the previous year, due to the impact of the import duty hike," WGC said in its India gold market update.

The gold import duty was raised sharply from 6 per cent to 15 per cent, making it the single-largest increase on record and fully reversing the duty cut of July 2024. The Prime Minister has also appealed to consumers to avoid buying gold for a year.

Snapping a three-day winning streak, the yellow metal of 99.9 per cent purity depreciated by Rs 600 to Rs 1,64,900 per 10 grams (inclusive of all taxes), according to local marketmen.

Silver futures traded lower on May 22, with benchmark contracts on MCX extending losses across expiries. The July 2026 contract fell 1.13% to Rs 2,71,771 per kg after moving in a range of Rs 2,71,567–2,75,225 during the session. The September contract declined 1.00% to Rs 2,78,043, while the December contract bucked the trend with a 0.56% gain.

Gold futures traded lower across major MCX contracts on May 22, reflecting cautious investor sentiment amid weak global cues and pressure on bullion prices. The June 2026 gold futures contract fell Rs 679, or 0.43%, to Rs 1,58,927 per 10 grams after touching an intraday low of Rs 1,58,816. The August contract declined Rs 780, or 0.48%, to Rs 1,61,560, while the October contract slipped Rs 530, or 0.32%, to Rs 1,64,860. Trading volumes remained active across contracts as investors tracked movements in the dollar index, Treasury yields, and expectations around global monetary policy.