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Tue, 29 Sept 2026
07:36:33 pm
Tue, 29 Sept 2026
07:36:33 pm
Rudransh Sangwan
Published at: May 12, 2026, 2:54 PM
Synopsis
MCX gold and silver prices witnessed sharp volatility as the rupee hit record lows against the US dollar and crude oil surged above $105 amid rising Middle East tensions. Check latest gold price in India, MCX gold price, and silver rates today.
India’s precious metals market witnessed extreme volatility on May 12, 2026, as MCX gold and silver prices fluctuated sharply amid escalating Middle East tensions, soaring crude oil prices, and a record decline in the Indian rupee against the US dollar.
While global bullion prices faced pressure from rising US bond yields and a stronger dollar, domestic gold and silver prices remained elevated due to the rupee’s sharp depreciation and strong retail demand across India.
The broader market environment reflects a growing macroeconomic battle between safe-haven buying demand and aggressive global monetary tightening expectations.
Gold prices initially surged during early trade before witnessing profit booking and volatility later in the session.
| Segment | Price Range |
|---|---|
| MCX Gold Futures | ₹1,52,068 – ₹1,53,200 per 10g |
| International Spot Gold | $4,684 – $4,730/oz |
| Retail Gold Prices (India) | ₹1,53,500 – ₹1,54,000 per 10g |
Despite intraday weakness, domestic gold prices continued trading near record highs due to rupee depreciation.
Silver remained significantly more volatile than gold, witnessing aggressive swings during the session.
| Segment | Price Range |
|---|---|
| MCX Silver Futures | ₹2,62,370 – ₹2,74,059 per kg |
| International Spot Silver | $80.90 – $86.00/oz |
| Retail Silver Prices (India) | ₹2,85,000 – ₹2,90,000 per kg |
Silver prices briefly crossed ₹2.82 lakh per kilogram before witnessing sharp intraday correction.
Several major macroeconomic and geopolitical developments are driving extreme volatility in bullion markets globally.
The biggest trigger remains rising tensions in West Asia after US President Donald Trump reportedly rejected Iran’s latest peace proposal.
Markets are increasingly worried about prolonged disruption in the Strait of Hormuz, one of the world’s most critical oil shipping routes.
This has pushed crude oil prices sharply higher and reignited fears of global inflation.
Brent crude oil surged above $105 per barrel as traders priced in supply risks from the Middle East conflict.
Higher oil prices directly impact inflation expectations globally because energy costs influence transportation, manufacturing, and industrial activity.
For India, elevated crude oil prices also worsen the trade deficit because the country imports most of its energy requirements.
The Indian rupee weakened sharply and touched fresh lifetime lows near ₹95.75 per US dollar.
A falling rupee makes imported commodities like gold and silver more expensive domestically.
Even if international bullion prices fall slightly, Indian prices can remain elevated because:
This currency effect is currently cushioning MCX gold and silver prices from deeper declines.
The rise in crude oil prices has increased fears that global inflation could remain elevated for longer.
As a result, markets are now expecting the US Federal Reserve to delay interest rate cuts.
Gold and silver are non-yielding assets.
When interest rates remain high:
This is one of the major reasons why international gold prices corrected despite geopolitical tensions.
Although silver witnessed sharp intraday correction, analysts believe its long-term outlook remains structurally stronger than gold.
Unlike gold, silver has massive industrial usage.
More than half of global silver demand now comes from industries such as:
| Sector | Silver Usage |
|---|---|
| Solar Energy | High |
| Electric Vehicles | Rapidly Growing |
| Electronics | Strong |
| AI Data Centers | Increasing |
| Green Infrastructure | Expanding |
The rapid expansion of renewable energy projects and AI infrastructure globally is creating sustained long-term silver demand.
Industry estimates suggest the silver market is currently facing a multi-year structural supply deficit.
This means:
As a result, institutional investors continue treating major silver corrections as long-term buying opportunities.
The sharp move in crude oil, currency weakness, and global uncertainty are also impacting Indian equities and macroeconomic stability.
These macro pressures are increasing uncertainty across Indian financial markets.
India remains one of the world’s largest gold importers.
With crude oil and gold imports both rising sharply, pressure on India’s current account deficit is increasing.
Recent commentary from Prime Minister Narendra Modi regarding reducing non-essential gold purchases has also added a psychological layer to the domestic bullion market.
Analysts expect bullion markets to remain highly volatile over the coming weeks.
| Commodity | Immediate Support | Resistance |
|---|---|---|
| Gold | ₹1.51 lakh | ₹1.54 lakh |
| Silver | ₹2.60 lakh | ₹2.85 lakh |
Silver is expected to remain more volatile than gold due to its dual role as both an industrial and precious metal.
Gold and silver markets are currently being driven by an intense mix of geopolitical uncertainty, energy market disruption, currency weakness, and shifting global monetary policy expectations.
While higher US yields and a stronger dollar are pressuring global bullion prices, India’s weak rupee and strong domestic demand continue supporting elevated MCX gold and silver prices.
Silver, in particular, remains structurally strong due to growing industrial demand from renewable energy, AI infrastructure, and electronics manufacturing.
As global tensions and inflation risks remain elevated, volatility across precious metals is likely to remain extremely high in the near term.
Prices are fluctuating sharply due to Middle East tensions, rising crude oil prices, a weak rupee, and changing US interest rate expectations.
India imports gold in US dollars. A weaker rupee makes gold imports more expensive, keeping domestic prices elevated.
Silver is highly volatile due to both industrial demand and investment activity, leading to aggressive intraday price swings.
Higher crude oil prices increase inflation fears globally, influencing interest rate expectations and investor sentiment.
Strong demand from solar energy, EVs, electronics, and AI infrastructure is creating long-term industrial demand for silver.
Weak rupee movement, retail demand, and geopolitical uncertainty are supporting domestic gold prices despite global corrections.
Investors are closely tracking crude oil prices, US inflation data, Federal Reserve policy commentary, rupee movement, and Middle East developments.
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