Indian gold prices saw a decline on May 29, with MCX rates around ₹1.6 lakh per 10g. Easing US-Iran tensions and weak Indian demand were key factors.
Gold prices in India experienced a significant downturn on Friday, May 29, 2026, as global and domestic factors converged to put downward pressure on the precious metal. MCX Gold was seen trading lower, hovering around ₹1.6 lakh per 10 grams, with 24K gold specifically noting a drop of ₹650 per 10 grams compared to Wednesday's prices. Gold futures also reflected this sentiment, falling to ₹1,56,666 per 10 grams by the day's close.
The primary driver behind this decline appeared to be the easing of US-Iran tensions, which typically reduces gold's appeal as a safe-haven asset. Furthermore, a fall in crude oil prices also contributed to the overall bearish sentiment in the commodities market. Domestically, India's gold market continued to grapple with subdued demand. The existing 15% gold tariff has been widely reported to be crushing demand, exacerbated by ongoing price volatility. This led to tepid demand from Indian buyers, a trend also observed in the broader Asian market where China premiums narrowed. Despite the daily updates on 18, 22, and 24 carat gold prices across major Indian cities like Delhi and Indore, buying interest remained constrained.
On the macroeconomic front, India's forex reserves saw a decline of $7.5 billion, falling to $681.4 billion, partly attributed to a decrease in gold and foreign currency assets. Interestingly, the Reserve Bank of India's balance sheet experienced a substantial 20.6% jump, primarily due to an earlier rally in gold prices and the depreciation of the rupee, indicating the appreciation of its existing gold holdings. Looking ahead, the outlook for gold prices remains uncertain. Investors and jewelry shoppers are keenly watching for signals that might indicate a recovery or further decline in the coming days, with particular attention to potential market movements in early June. While some anticipate a recovery, the current market conditions suggest caution is warranted for those considering fresh investments or purchases.