Gold prices rise in India today after four-day slump

Gold prices in India rose on Friday (May 30), supported by renewed domestic demand as the wedding season gathers pace. After four straight days of decline, this marks the yellow metal’s first uptick for the week.

The price of 24-carat gold jumped ₹270 to ₹97,310 per 10 grams, while 22-carat gold rose ₹250 to ₹89,200. Rates for 18-carat gold also climbed ₹210 to ₹72,990 per 10 grams, according to Goodreturns.

Despite today’s gains, gold prices in India have dropped nearly ₹9,500 per 100 grams this week, reflecting pressure from global cues.

In contrast, global gold prices edged lower. Spot gold was down 0.5% at $3,300.59 an ounce, while US gold futures traded at $3,298.30 an ounce.

The dollar index strengthened 0.2%, making gold costlier for international buyers.

Investors are eyeing the US Personal Consumption Expenditures (PCE) price index, due later on Friday (May 30). This is the Federal Reserve’s preferred inflation gauge and could influence interest rate expectations.

“Gold prices are more or less consolidating... the range is wider due to stronger dollar confidence,” said Brian Lan, Managing Director, GoldSilver Central, Singapore.

A Reuters poll estimates the US PCE index will remain flat at 0.1% month-on-month and 2.2% year-on-year.

Meanwhile, San Francisco Fed President Mary Daly indicated that interest rate cuts may still come this year but cautioned against premature easing.

Tariff and rate uncertainty shape sentiment

The US gold market saw heightened volatility this week. A federal appeals court temporarily reinstated Donald Trump’s controversial tariffs, adding geopolitical uncertainty.

This, combined with weak GDP data and a rise in jobless claims, helped gold rebound after early losses.

“Gold initially plunged after a US court blocked Trump’s tariff plan, but prices recovered on appeal news and weak economic data,” said Rahul Kalantri, VP Commodities, Mehta Equities.

He noted support for gold at ₹94,910 per 10 grams and resistance at ₹95,940 per 10 grams.

Aksha Kamboj, Vice President, India Bullion and Jewellers Association (IBJA), observed, “Prices are consolidating. Today’s PCE data could shift sentiment. Investors may use this correction to accumulate for the long term.”

Sandip Raichura, CEO – Retail & Distribution, PL Capital Group, echoed a longer-term bullish outlook.

“From $2,000 an ounce in Jan 2024 to $3,300 an ounce now, gold has risen 65% in 18 months. Structural demand from ETFs and sovereigns remains strong. We may see gold hitting $3,700 an ounce in the next year," he said.

Investment outlook

Analysts suggest that investors consider the current price correction as a potential entry point. With US inflation data and central bank policy still uncertain, gold continues to be a hedge against volatility.

“Rate cut delays are gold-negative, but slowing growth and buying from global institutions create a floor,” Raichura added.

As wedding season demand boosts domestic interest and global factors remain in flux, gold’s path may stay bumpy—but upward in the long term.

-With Reuters inputs