Gold prices fell nearly 1 percent to ₹1.50 lakh per 10 grams in futures trading on Monday, influenced by weakening global trends, a strong US dollar, and rising crude oil prices.
On the Multi Commodity Exchange (MCX), gold for June delivery saw a decrease of ₹1,149, or 0.76 percent, settling at ₹1,50,203 per 10 grams, with a trading volume of 9,510 lots. In the preceding week, gold had recorded a decline of ₹1,347, or close to 1 percent, ending at ₹1.51 lakh per 10 grams.
Gaurav Garg, Research Analyst at Lemonn Markets Desk, noted, “Gold prices have remained largely range-bound, experiencing slight pressure from ongoing inflation concerns and expectations of higher interest rates, although geopolitical tensions continue to provide some support.”
In international markets, Comex gold futures for June dropped by USD 58.7, or 1.26 percent, to USD 4,585.8 per ounce in New York. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd, commented, “Gold prices trade lower, continuing last week’s fall, and are hovering near one-month lows, as the strength of the dollar and rising oil prices weigh on sentiment.”
The rise in crude oil prices, attributed to ongoing US-Iran tensions and supply disruptions in the Strait of Hormuz, has amplified concerns regarding energy-induced inflation. This situation has prompted central banks globally to signal a hawkish stance. The US Federal Reserve has maintained interest rates but noted increasing inflation risks. Fed Chair Jerome Powell acknowledged these risks while expressing optimism about robust growth.
Furthermore, the European Central Bank, the Bank of England, and the Bank of Japan have also indicated possible rate hikes, reinforcing the notion of prolonged higher rates that impact assets such as gold.
On the geopolitical front, uncertainty remains as US President Donald Trump considers potential military actions while Iran has proposed a revised peace initiative, offering some potential for de-escalation. However, Trump expressed dissatisfaction with this proposal, keeping markets in a state of tension. Iran has reiterated its control over the Strait of Hormuz, maintaining risks to global oil supplies.
Market participants will closely observe PMI data from major economies and US employment indicators for further insights into monetary policy trends and the future trajectory of gold prices, as noted by Modi of MOFSL.
Published on May 4, 2026.
