Gold and silver prices edged lower in domestic markets on Friday, May 15, though rates continued to remain close to historic highs. The decline followed weak global cues and profit-booking in international bullion markets, analysts said.
According to retail market data, 24-carat gold was trading close to the ₹1 lakh mark per 10 grams in several Indian cities, while 22-carat gold also saw a marginal drop in rates. Silver prices slipped by nearly ₹1,500 per kilogram and were trading around ₹97,000/kg in major bullion markets.
In Delhi, Mumbai, Chennai and Kolkata, gold prices witnessed slight variations due to local levies and transportation charges. Despite the correction, jewellery rates continued to stay significantly higher compared to previous months, affecting consumer demand in many regions.
Market experts attributed the fall in prices to easing geopolitical tensions, fluctuations in the US dollar and mixed signals from global commodity markets. International gold prices remained volatile during the trading session, while MCX gold and silver futures also recorded losses.
Traders said investors were booking profits after bullion prices touched record highs earlier this month. At the same time, uncertainty surrounding global economic growth and interest rate expectations continued to support safe-haven demand for gold, preventing a sharper decline.
The recent increase in import duty on gold has also added pressure on domestic buyers. Industry observers believe higher import costs may keep retail prices elevated in the coming weeks, especially during the ongoing wedding and festive season.
Jewellers in several cities reported slower customer footfall as rising prices discouraged middle-income buyers from making large purchases. However, investment demand for gold remained steady, particularly among consumers looking at bullion as a long-term hedge against inflation and market volatility.