Gold, Silver Prices Today (May 6): Gold Rises on Weak Dollar, Silver Outperforms in Domestic Market; Check 24K, 22K, 18K Rates Across Delhi, Mumbai, and Chennai

Global currencies’ movements, easing geopolitical tensions and steady demand, impacted gold and silver prices on May 6. The bullion markets were mixed but mostly higher for gold. A softer dollar boosted gold prices, but locally silver was the star performer on the back of strong international cues and safe-haven buying.

Gold prices lifted by global recovery, weaker dollar

Gold prices edged higher in early trade as the US dollar fell 0.2% against a basket of major currencies to 98.28, making it more attractive for international buyers.

At 6:37 am, spot gold was trading at USD 4,611.84, up 1.94%, having added USD 36 to its recent recovery. MCX gold futures were up 0.2% at 1,49,753 per 10 grams, indicating steady investor sentiment domestically.

Market players said the dollar’s decline was providing gold with major support, making it cheaper for holders of other currencies and helping it to serve as a hedge against currency weakness.

Gold Rate in Major Cities (This Morning)

(Source: Good Returns)

Geopolitical easing supports crude price falls and a bullish outlook for bullion

International crude oil prices declined on signs of abating geopolitical tensions. US President Donald Trump’s decision to call off “Project Freedom”, a security mission for commercial shipping in the Strait of Hormuz, eased market fears in the short term and created space for possible diplomatic talks with Iran.

WTI crude fell below USD 100 per barrel after this development, while Brent crude fell 3.6% in the previous session.

Falling oil prices may help ease inflationary pressures around the world, raising expectations of lower interest rates, experts said, which is usually beneficial for gold as it does not pay yields and does well in a low-rate environment.

Silver beats gold in the domestic bullion market

Silver had a better momentum than gold in the Indian bullion market on strong global demand and lingering geopolitical concerns in West Asia.

Silver prices jumped Rs 1,500 to Rs 2.51 lakh per kg in Delhi in the previous session, while gold prices fell to Rs 1,52,500 per 10 grams (including taxes), according to data from the All India Sarafa Association.

On the Multi Commodity Exchange, gold traded in positive territory, suggesting underlying steady demand.

Retail gold rate in India

Benchmark gold prices (excluding GST and making charges) as per Indian Bullion and Jewellers Association (IBJA): 24K gold Rs 1,47,640 for 10 grams. 22K gold: Rs 1,44,090 for 10 grams 18K GOLD: Rs 119,590 for 10 gram

The price of 10 grams of 24K gold was quoted at 1.49 lakh – 1.50 lakh in major cities. Chennai’s prices were quoted as being slightly higher than those of other cities.

World gold market trend 

International spot gold was at $4,549.57 an ounce, and silver was up 1.08% at $73.51 an ounce. Gold prices traded near the USD 4,550 level on the back of choppy crude oil prices and changing outlooks on geopolitical stability.

Outlook for the market

Experts said macroeconomic factors such as the movement of the dollar, crude oil trends, and expectations for interest rates drove gold. However, global uncertainty and a weak currency are supporting the overall mood for gold, despite the possibility of short-term volatility. But industrial demand and safe-haven buying support silver, which has been the better performer in the bullion market in the current cycle.

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(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The experts give their recommendations, suggestions, views, and opinions. Please consult a financial advisor before making any investment decisions.)