Current Gold Prices: Market Volatility Amid US-Iran Tensions

Gold Rate Update (May 12, 2026)

Gold prices experienced significant fluctuations on May 12, 2026, as ongoing uncertainties regarding the US-Iran situation continued to influence global commodity markets. On the Multi Commodity Exchange (MCX), the price of 24-carat gold futures increased by Rs 357, or 0.23 percent, reaching Rs 1,54,020 per 10 grams. This follows a previous closing price of Rs 1,53,663 per 10 grams. Earlier this year, on January 29, gold futures had peaked at a record Rs 1,80,779 per 10 grams. The Indian Bullion and Jewellers Association (IBJA) reported that the price of 24-carat gold was Rs 1,50,362 per 10 grams during morning trading on Tuesday. Additionally, data from the All India Sarafa Association indicated that gold prices were at Rs 1,55,300 per 10 grams, including taxes. Meanwhile, international spot gold prices fell to $4,661.68 per ounce, reflecting a cautious mood in global markets.

Gold Prices in Major Cities

24K, 22K, 18K Gold Rates in Key Cities

Factors Influencing Gold Price Fluctuations

Market Sentiment and Global Influences

Market sentiment has turned cautious following Iran's rejection of a peace proposal associated with the United States, raising fears of escalating tensions in West Asia. This uncertainty has led to an increase in crude oil prices, which in turn has heightened inflation expectations worldwide. Additionally, domestic sentiment was affected by Prime Minister Narendra Modi's recent call for citizens to refrain from non-essential gold purchases for a year to help conserve foreign exchange reserves. On Monday, gold prices in Delhi's bullion market fell by Rs 600 to Rs 1,55,300 per 10 grams. Futures contracts for June delivery on MCX also decreased by Rs 462 to Rs 1,52,068 per 10 grams due to weak spot demand and profit-taking by traders.

Expert Insights on Gold Market Trends

Continued Pressure on Gold Prices

According to analysts, the pressure on gold prices has intensified due to renewed uncertainties in US-Iran negotiations. Saumil Gandhi, a Senior Analyst at HDFC Securities, noted that the rejection of recent proposals has reignited fears of a prolonged conflict, which has driven up crude oil prices and raised inflation concerns. Jatin Trivedi, a research analyst at LKP Securities, commented that the markets are reacting cautiously to the negative developments regarding US-Iran peace talks, which have been rejected again, raising fears of renewed conflict escalation. This uncertainty continues to exert pressure on global risk sentiment, while rising crude oil prices are amplifying inflation worries in the markets.