Gold and silver prices plunged today, with MCX futures falling below ₹1.50 lakh/10g, driven by escalating US-Iran conflict and a surging crude oil. Investors saw mixed signals as Sovereign Gold Bonds matured with exceptional returns.
| Purity | Per Gram | Per 10g | Change |
|---|---|---|---|
| 24K Gold | ₹14,962INR | ₹1,49,620 | ↓ ₹131 |
| 22K Gold | ₹13,715 | ₹1,37,150 | ↓ ₹120 |
| 18K Gold | ₹11,222 | ₹1,12,220 | — |
Source: GoldMeter.in • Historical data for reference only
Gold and silver markets witnessed a significant downturn on May 4, 2026, as prices plummeted globally and across Indian exchanges. The precious metals experienced a sharp nosedive of up to 5%, primarily fueled by escalating geopolitical tensions between the US and Iran, which sent crude oil prices soaring and strengthened the US dollar. This confluence of factors led to a bearish sentiment, impacting both immediate purchases and investment vehicles like Gold ETFs.
Internationally, Comex gold registered a substantial drop of $134 per ounce, while silver tumbled $4 per ounce. This global weakness quickly translated to the Indian market, where MCX gold futures fell below the ₹1.51 lakh mark and further slid to ₹1.50 lakh per 10 grams. Gold ETFs traded in the red, reflecting the weak global headwinds. Jewelry shoppers in cities across India were advised to check daily rates for 22K and 24K gold, as prices were highly volatile.
The primary catalyst for today's market turmoil was the reported attack on a US warship in the Strait of Hormuz, which immediately escalated the US-Iran conflict. This development sent crude oil prices jumping over 5%, sparking fresh oil-led inflation fears. Simultaneously, the US dollar firmed up, making dollar-denominated gold more expensive for holders of other currencies and reducing its appeal as a safe-haven asset. Analysts are now debating whether this downward trend will continue or if prices will rebound.
Despite the day's somber market performance, there was encouraging news for long-term investors in Sovereign Gold Bonds (SGBs), as a tranche maturing today delivered an astounding 386% return, turning a ₹1 lakh investment into ₹4.86 lakh. Furthermore, the National Stock Exchange (NSE) introduced Electronic Gold Receipts, aiming to transform gold trading in India by offering a more transparent and efficient digital avenue for investors. For the coming month, investors and jewelry buyers should closely monitor geopolitical developments and the trajectory of crude oil prices and the US dollar, as these will be crucial in determining bullion's direction.