Gold Prices In India Outlook On May 9: How INDO-PAK Border Tension, Trade Deal Will Impact 24K, 22K, 18K Gold?

Gold prices in India are likely to see range-bound performance on Friday, amidst border tensions, and trade deals. 24 carats, 22 carats and 18 carats have recorded a fourth consecutive winning streak so far with 10 grams of gold nearing the Rs 1,00,000 mark. However, safe-haven assets movement will be observed after the dollar and treasury yield rebounded with strong gains. When dollar and treasury yields are up, gold demand gets impacted.

At the time of writing, MCX gold price traded at Rs 96,218 per 10 grams, marginally up. The bullion was near its intraday high of Rs 96,245 on Friday.

On the other hand, MCX silver price dipped by Rs 241 to trade at Rs 96,271 per 1kg.

After India carried Operation Sindoor on terrorist infrastructure in Pakistan and Pakistan-occupied Jammu & Kashmir, the latter attempted to engage a number of military targets in Northern and Western India including Awantipura, Srinagar, Jammu, Pathankot, Amritsar, Kapurthala, Jalandhar, Ludhiana, Adampur, Bhatinda, Chandigarh, Nal, Phalodi, Uttarlai, and Bhuj, using drones and missiles. These were neutralised by the Integrated Counter UAS Grid and Air Defence systems. The debris of these attacks is now being recovered from a number of locations that prove the Pakistani attacks.

Overnight, Donald Trump, the 47th US President, and Keir Starmer, the Prime Minister of the United Kingdom, have announced a breakthrough trade deal for driving the two countries' economies. As part of the US-UK trade deal, automobiles, pharmaceuticals, and aviation leaders like Boeing and steel & aluminium received a major boost with the revision in tariffs. The US gets access to a new market in the UK that is going to boost revenue. Both the US and the UK have reduced their tariffs on imported products from each other.

Following the US-UK deal, the dollar index soared to hit the 101 mark, putting it on the path for third weekly gains. Also, the US 10-year benchmark treasury yield is on the move to record its second weekly gains, by trading higher 4.36% in the early trade of Friday.

Gold Rates In India:

In the previous day, the 10-gram gold price climbed by Rs 600 to Rs 99,600 in 24K, while the 10-gram gold price was up by Rs 550 to Rs 91,300 in 22K and higher by Rs 450 to Rs 74,700 in 18K.

Meanwhile, the price of 100 grams of gold jumped by Rs 6,000 to Rs 996,000 in 24K, up by Rs 5,500 to Rs 913,000 in 22K, and higher by Rs 4,500 to Rs 747,000 in 18K.

Cheapest gold price was at Rs 7,740 in 1 gram of 18K, followed by Rs 9,130 in 22K and Rs 9,960 in 24K.

Silver Prices In India:

On May 8th, silver prices are unchanged. 1 Kg of silver price was at Rs 99,000, followed by 100 grams silver at Rs 9,900 each, and Rs 990 each in 10 grams. 1 gram silver is available at Rs 99.

What Will Impact Gold Prices In India?

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, gold prices remained highly volatile as multiple global and domestic triggers played out simultaneously. In international markets, Comex gold slipped sharply from $3,400 to $3,320 following U.S. President Trump's announcement of a potential "biggest trade deal," triggering profit-taking across safe-haven assets. Meanwhile, MCX gold fell by Rs 1,400 to Rs 95,500 before rebounding sharply towards Rs 97,000, driven by a weakening rupee and escalating border tensions between India and Pakistan.

He added, the combination of geopolitical stress and rupee depreciation has kept domestic gold resilient despite global softness. The broader range for gold is now seen between Rs 95,000 and Rs 98,000. A breakout on either side could trigger a 3-4% directional move in the coming sessions.

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