Gold prices continued their downward trajectory on Monday, approaching one-month lows, as a robust US dollar and rising crude oil prices negatively impacted market sentiment. Despite geopolitical tension in the Strait of Hormuz, which prevented a sharper decline, gold remained under pressure.
Currently, MCX Gold is priced at approximately ₹1,51,000 per 10 grams, down from a recent peak of ₹1,55,000. On the international market, Comex Gold is trading just above the $4,600 mark, reflecting a decrease of more than 2% over the past fortnight. The immediate resistance for the metal is identified between $4,640 and $4,670, while support is noted at $4,570; prices may drop toward $4,500 if this support level is breached.
The overarching challenge for gold stems from a hawkish shift among major central banks. The US Federal Reserve opted to maintain current interest rates in its latest meeting but indicated concerns about rising inflation risks. Jerome Powell, the outgoing Fed Chair, warned markets of ongoing inflationary pressures while expressing cautious optimism regarding economic growth. Similarly, the European Central Bank, Bank of England, and Bank of Japan are also hinting at possible rate hikes, contributing to a prolonged high-rate environment that typically exerts pressure on non-yielding assets like gold.
The situation has been exacerbated by surging crude oil prices. West Texas Intermediate (WTI) Crude has surged by over 7% over the past two weeks, trading above the $100-per-barrel threshold, driven by supply disruptions linked to the Strait of Hormuz. Iran has maintained its claim over this strategic waterway, and while it has proposed a revised peace plan via Pakistan, US President Donald Trump expressed dissatisfaction with the offer. Additionally, the US has reiterated its naval blockade of Iranian ports, leading to inflation concerns that have prompted central banks to adopt a more hawkish stance, further dampening bullion demand.
Gold exchange-traded funds have experienced outflows, intensifying selling pressure on the metal. However, gold managed to stabilize on Friday following Iran’s indication of a proposal to reopen the Strait of Hormuz, which temporarily alleviated supply fears and slightly weakened the US dollar.
In silver markets, prices remain stable, trading around $75 per ounce internationally and between ₹2,50,000 and ₹2,51,000 per kg on MCX. This follows a significant prior increase, as industrial demand and safe-haven interest continue to provide support. Analysts at Axis Direct have recommended buying MCX Silver at approximately ₹2,47,000, with target prices set at ₹2,80,000 and ₹2,90,000.
This week’s market focus will shift to purchasing managers’ index (PMI) data from major economies, as well as US job market statistics, which are anticipated to shed light on the Federal Reserve’s rate strategy and establish a near-term direction for precious metals.
Published on May 4, 2026.
