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Informist, Tuesday, May 19, 2026

 

By Reshma Ravi

 

MUMBAI – Futures contracts of gold extended gains for the second day on the Multi Commodity Exchange of India on Tuesday, as the rupee fell to a record low and made dollar-denominated gold costlier for Indian buyers. Meanwhile, gold prices on COMEX fell amid a strong dollar index and inflation worries. Market participants are awaiting the minutes of the Federal Open Market Committee meeting, due Wednesday, to assess the US Federal Reserve's monetary policy path.

 

At 1646 IST, the most active June contract of GOLD was up 0.4% at INR 160,013 per 10 grams on the MCX. The same-month contract on the COMEX was down 0.4% at $4,540.5 per ounce. The most active July SILVER contract on the MCX was down 1% at INR 274,457 per kilogram, and the same-month contract on COMEX was down 1.4% at $76.39 per ounce.

 

Gold prices on the domestic exchange rose as the rupee fell sharply against the dollar, closing at a record low of 96.53 on Tuesday amid high crude oil prices. Typically, a weak Indian unit pulls up the prices of dollar-denominated commodities.

 

Crude oil prices rose above $100 per barrel on Tuesday amid prolonged supply disruptions and uncertainty around the peace negotiations between the US and Iran. President Donald Trump said that he would pause the planned US attack on Iran at the request of Gulf countries, but threatened that US forces would attack Iran on a large scale if Tehran does not come up with an acceptable deal soon.

 

"If the US and Iran talks reached a peace deal, it could be a big positive trigger for bullion markets," Manoj Jain, director of Prithvi Finmart, said.

 

However, the gains in domestic gold prices were capped as soaring oil prices reinforced inflationary worries and weighed on international gold prices. "Rising US inflation has reduced expectations for Federal Reserve rate cuts this year while increasing speculation that policymakers could still raise interest rates before year-end," analysts at Kedia Advisory said. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal. 

 

"We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the crude oil price, and the US-Iran peace deal uncertainty," Jain said. 

 

Meanwhile, JP Morgan lowered its average gold price forecast for 2026 to $5,243 per ounce from $5,708 but maintained a longer-term bullish outlook, expecting prices to approach $6,000 per ounce by the end of 2026 as investment demand recovers, Kedia Advisory said in a note. 

 

Outlook for the coming week:

--MCX gold seen at INR 157,500–INR 162,000 per 10 grams

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

--MCX silver seen at INR 272,000-INR 278,000 per kg

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

End

 

US$1 = INR 96.53

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

 

Edited by Saji George Titus

 

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