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Informist, Monday, May 18, 2026

Reshma Ravi

MUMBAI – Futures contracts of gold and silver rebounded Monday on the Multi Commodity Exchange of India after falling for two consecutive sessions as the rupee fell to a record low against the dollar. However, gains in prices are likely to be capped due to concern that higher inflation in the wake the West Asia war may push central banks to increase interest rates.

At 1830 IST, the most active June contract of GOLD was up 0.9% at INR 159,990 per 10 grams on the MCX. The same-month contract on the COMEX was down 0.3% at $4,547.4 per ounce. The most active July SILVER contract on the MCX was up 2% at INR 278,501 per kilogram, and the same-month contract on COMEX was down 1.5% at $76.37 per ounce.

Precious metals in the domestic market rose as the rupee fell to a record low against the dollar, analysts at Kedia Advisory said. The rupee fell to a record low of 96.3875 against the dollar Monday. When the rupee depreciates against the dollar, gold prices in the domestic market adjust because the precious metal is priced in rupees. 

However, gains in domestic bullion prices are likely to be capped due to rising fears of inflation and also as elevated interest rates pushed global bond yields higher. "Higher inflation worries due to West Asia conflicts and elevated crude oil prices pushed the US 10-year bond yields to 1-year higher," said Manoj Jain, director of Prithvi Finmart.

Inflation concerns rose as hopes of an agreement to end the war between the US and Iran dimmed, with US President Donald Trump warning Tehran that the "clock is ticking" for a peace deal. "They better get moving, FAST, or there won't be anything left of them," Trump wrote in a post on social media platform Truth Social. "TIME IS OF THE ESSENCE!". Amid persistent inflation concerns, about 99.1% traders expect the US Federal Reserve to keep interest rates unchanged at its June meeting, according to the CME Group's FedWatch tool.

Meanwhile, on Saturday, the Indian government imposed curbs on silver imports, in the latest move to cut down on demand for precious metals to ease the pressure on the rupee and foreign exchange reserves. The curbs comes after silver imports jumped 157% year-on-year in April to $411 million. Imports of silver bars, including those containing 99.9% or more by weight of silver, are now restricted, the Director General of Foreign Trade said in a notification.

Outlook for the coming week:

--MCX gold seen at INR 156,000–INR 161,000 per 10 grams

--COMEX gold seen at $4,500–$4,580 an ounce

--MCX silver seen at INR 270,000-INR 283,000 per kg

--COMEX silver seen at $72–$80 an ounce

End

US$1 = INR 96.35

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

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