Gold rates in India are expected to be volatile on Tuesday, May 27, due to the extension in tariffs on EU products by the US. 24-carat gold price dropped by Rs 440 in 10 grams, and 100 grams gold price crashed by a whopping Rs 4,400 yesterday. MCX gold price struggled below Rs 96,000 per 10 grams, while Comex gold slipped to around $3,340 levels.
10 grams gold price dropped by Rs 440 to Rs 97,640 in 24 carats, while the prices are down by Rs 400 to Rs 89,500 in 22 carats, and by Rs 330 to Rs 73,230 in 18 carats.
100 grams gold price crashed by Rs 4,400 to Rs 9,76,400 in 24 carat, while declined by Rs 4,000 to Rs 8,95,000 in 22 carats, and down by Rs 3,300 to Rs 7,32,000 in 18 carats.
Unlike gold prices, silver rates saw a mild jump on Monday. 1 Kg silver price zoomed by Rs 100 to the Rs 1,00,000 mark. 100 grams and 10 grams of silver are Rs 10,000 and Rs 100. The cheapest silver is at Rs 100 per 1 gram.
MCX Gold, Silver Prices:
"Gold prices fell by Rs 700 to settle at Rs 95,650 on the MCX, tracking weakness in Comex gold and added pressure from a weaker rupee. The domestic market faced headwinds as USDINR volatility added resistance, limiting gold's upside despite global uncertainties," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
After market hours, MCX gold price, with June 2025 expiry, stood at Rs 95,935 per 10 grams, down by Rs 486 or 0.5%. The bullion touched an intraday low of Rs 95,507 per 10 grams.
On the contrary, silver prices advanced by Rs 42 or 0.04% to close at Rs 98,045 per 1kg on MCX. The silver futures ranged from Rs 97,566 to Rs 98,300 per 1kg.
According to Trivedi, the decline was largely triggered after the U.S. announced an extension of its tariff implementation on EU goods from June 1 to July 6, easing immediate geopolitical tensions. This reduced gold's appeal as a near-term hedge.
For Tuesday, he said, "Going forward, gold is expected to remain volatile with a trading range between Rs 94,500 and Rs 96,750. Market participants will closely monitor currency movements and global trade developments for further cues."
Notably, COMEX gold ended at $3,441.3 per ounce, down by 0.5% on May 26th. This comes after US President Donald Trump delayed the implementation of a 50% tariff on EU items to July 9, from the earlier date of June 1.
However, trade concerns remain as Trump on Friday also warned Apple Inc. that it would be subject to 25% tariffs if it does not manufacture its iPhones in the US. Last week, bullion gained nearly 5%, supported by tariff uncertainty and mounting concerns over the US fiscal outlook. Trump's new tax bill, which was recently approved by the House and is now headed to the Senate for a vote expected by August, is projected to widen the US budget deficit by nearly $3 trillion over the next decade, as per Trading Economics.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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