Spot gold opens lower as continued low demand weighs on prices
This story was originally published at 15:14 IST on 20 May 2026
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By Reshma Ravi
MUMBAI – Gold prices in the spot market opened lower on Wednesday, tracking futures on the Multi Commodity Exchange of India and the COMEX. Spot prices fell as demand remained weak after the government increased import duty on the precious metal, traders said. Gold of 99.9% purity opened at INR 157,961 per 10 grams in Mumbai, down from Tuesday's closing of INR 159,077 per 10 grams.
"Sales have come down after the government increased the import duty," Kumar Jain, spokesperson for the India Bullion and Jewellers Association, said. Meanwhile, dealers are offering discounts of INR 3,000 – INR 10,900 per 10 grams, traders said. "In India, gold discounts widened sharply after the government increased import duties on gold and silver to 15% from 6%, significantly reducing jewellery demand and boosting scrap supplies," Kedia Advisory said in a note.
Prices also fell as uncertainty surrounding the West Asia war and persistent inflation concerns continued to influence market sentiment, Nitin Kedia, national general secretary of the All-India Jewellers & Goldsmith Federation, said. Rising US inflation has reduced expectations of rate cuts by the Federal Reserve this year, while increasing speculation that policymakers could raise interest rates.
Rising US Treasury yields also weighed on prices, a Mumbai-based jeweller said. The 30-year US Treasury bond's yield hit its highest in 19 years on Tuesday, CNBC reported. US 10-year yields rose to their highest levels in more than a year, the report said. End
Edited by Avishek Dutta
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