Current Trends in Gold Prices: A Decline Amid Global Uncertainty

Gold Prices on a Downward Trend

Gold Rate Update (May 28, 2026): On Thursday, May 28, gold prices in India continued to decline, affecting both domestic futures and spot rates. The Multi Commodity Exchange (MCX) reported a drop of Rs 1,966, or 1.25%, bringing the price of 24-carat gold futures down to Rs 1,55,650 per 10 grams at market opening. The All India Sarafa Association noted a decrease of Rs 1,100 in the price of 24-carat gold, now at Rs 1,61,300 per 10 grams, taxes included. In the international market, spot gold fell to $4,461.02 per ounce, driven by increased demand for the US dollar as a safe-haven asset. Additionally, data from the Indian Bullion and Jewellers Association (IBJA) indicated that gold prices rose to Rs 1,56,072 per 10 grams by Thursday morning. According to GoodReturns, the retail price for 24-carat gold was recorded at Rs 1,58,440 per 10 grams. Despite this recent decline, gold prices remain significantly elevated compared to previous months, having reached an all-time high of Rs 1,80,779 per 10 grams on January 29 of this year.

Gold Rates in Major Cities

Factors Influencing the Decline in Gold Prices

Market experts attribute the recent drop in gold prices to geopolitical tensions and cautious investor sentiment. Saumil Gandhi, a Senior Analyst at HDFC Securities, noted that the ongoing uncertainty regarding US-Iran negotiations has exerted downward pressure on gold. The diminishing prospects for a timely agreement have heightened concerns over rising energy costs and potential disruptions in global trade, leading to fears of prolonged inflation. Kainat Chainwala, Assistant Vice President at Kotak Securities, mentioned that spot gold is currently trading below $4,500 per ounce, with silver also experiencing a decline of over 2% to below $75. The strengthening of the dollar, driven by its appeal as a safe-haven asset following recent US military actions in southern Iran, has contributed to the continued decline observed on Tuesday. Furthermore, gold futures faced pressure in the previous session, with June delivery contracts on MCX dropping by Rs 561 to Rs 1,57,055 per 10 grams, while August contracts fell by Rs 521 to Rs 1,60,340 per 10 grams. Globally, Comex gold futures for August delivery also decreased to $4,518.87 per ounce, reflecting the weak sentiment in international bullion markets.