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Informist, Friday, Jun. 5, 2026

By Reshma Ravi

MUMBAI – Average spot prices of gold in India opened lower on Friday, tracking futures on the Multi Commodity Exchange of India and the COMEX as ‌tensions in the West Asia dampened hopes for a US-Iran peace deal amid rising inflation and interest rate-hike fears. On Thursday, the Iran-backed Hezbollah militia rejected a new ceasefire in Lebanon and Israel said it would not withdraw troops from the country, undermining US President Donald Trump's efforts to halt fighting there to forge peace with Tehran.

Gold of 99.9% purity opened at INR 154,190 per 10 grams, down from Thursday's closing price of INR 156,086 per 10 grams. In Mumbai, spot gold opened at INR 154,332 per 10 grams.

Hwakish remarks from the Federal Reserve official also weighed on gold prices. Kansas City Federal Reserve President Jeffrey Schmid said on Thursday that the US central bank's choice now is between being patient and holding interest rates steady or hiking rates to tamp down inflation that has been above the target for years, Reuters reported. Typically, higher interest rates dim the appeal of the non-interest-bearing precious metal.

"Physical demand remained subdued in major Asian markets. Indian dealers increased discounts as higher prices and import duties discouraged purchases," Kedia Advisory said in a note. Dealers are offering a discount ranging from INR 6,000 to INR 10,000 per 10 grams, traders said.

"The wedding season is drawing to a close. Retail demand continues to moderate, and jewellery stores are reporting lower footfall across the country," Reuters quoted a Mumbai-based bullion dealer with a private bank, as saying. Weddings are a major driver of gold purchases in India, with bullion in the form of jewellery forming a crucial part of a bride's attire and a preferred gifting option among family and guests.  End

Edited by Akul Nishant Akhoury

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