Spot gold opens lower as Trump rejects Iran's response to US peace proposal
This story was originally published at 14:38 IST on 11 May 2026
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By Taniva Singha Roy
MUMBAI – The price of gold in the spot market fell in early trade Monday, tracking futures contracts on the Multi Commodity Exchange of India and the COMEX. Gold prices fell as US President Donald Trump rejected Iran's response to Washington's peace proposal to end the 10-week-long war in West Asia, keeping the ceasefire on edge and continuing the closure of the Strait of Hormuz.
In Mumbai, gold of 99.9% purity opened at INR 150,277 per 10 grams, down from Friday's closing price of INR 151,078 per 10 grams, according to data from the India Bullion and Jewellers Association Ltd. Traders were offering a discount of INR 1,550 per 10 grams.
Meanwhile, Prime Minister Narendra Modi's recent appeal to citizens to avoid non-essential gold purchases, driven by growing concerns over India's external sector stability amid rising geopolitical tensions and elevated import bills, also contributed to the fall in prices of gold, according to Kedia Advisory. Following the Prime Minister's commentary, the market is also anticipating the possibility of a higher import duty on gold to curb unnecessary imports and manage dollar outflows. Industry estimates suggest that a duty hike could reduce gold import volumes by nearly 10–12%, it said.
However, "due to a depreciation in the rupee by 65 paisa against the dollar, a fall in the price of gold in the international market was somewhat offset, and the losses were limited," said Nitin Kedia, national general secretary of the All-India Jewellers & Goldsmith Federation. The benefits of lower global prices were offset by a weaker rupee. End
Edited by Tanima Banerjee
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