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Informist, Thursday, May 21, 2026

By Taniva Singha Roy

MUMBAI – Gold prices in the spot market opened higher due to easing of tensions in West Asia. Hopes for a possible resolution to the US-Iran conflict pulled down crude oil prices and reduced inflation concerns, which supported gold prices, Amit Gupta, analyst at Kedia Advisory, said in a note. 

Gold of 99.9% purity opened at INR 158,947 per 10 grams in Mumbai, up INR 392 per 10 grams. Gold has underlying support due to central bank demand, traders said. Dealers are offering discounts of INR 10,500 per 10 grams, they said. 

"But the upside in spot gold prices could be capped due to low demand in India, as the government increased the import duty on gold to 15% from 6%," Kumar Jain, spokesperson for the India Bullion and Jewellers Association, said. Moreover, demand for bullion has also reduced as Prime Minister Narendra Modi urged people to avoid non-essential gold purchases to lower India's import bill and conserve foreign exchange, traders said.

Meanwhile, minutes from the US Federal Reserve revealed that most officials would be open to raising interest rates if the war in Iran continued to fuel inflation. Higher interest rates dent demand for non-interest-yielding yellow metal.  End

Edited by Saji George Titus

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