Spot gold in India lowest since May, down over 3% on rate hike worries
This story was originally published at 14:43 IST on 11 June 2026
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By Reshma Ravi
MUMBAI – Average spot gold prices in India fell over 3% to their lowest level since early May on Thursday, tracking futures on the Multi Commodity Exchange of India and the COMEX as rising crude oil prices fuelled inflation concerns and reinforced expectations of a prolonged higher interest rate environment.
Crude oil prices rose as the US and Iran continued to strike each other, weakening already fragile peace talks. The US and Iran traded air attacks for a second straight day on Thursday, with US President Donald Trump vowing further strikes if Tehran does not immediately agree to a peace deal.
Gold of 99.9% purity opened at INR 145,584 per 10 grams, down from Wednesday's closing price of INR 147,146 per 10 grams. In Mumbai, spot gold opened at INR 154,332 per 10 grams. Dealers were offering a discount of about INR 1,200 per 10 grams, Nitin Kedia, national general secretary of the All-India Jewellers & Goldsmith Federation, said.
Indian spot gold prices dropped over 3% to their lowest since early May, falling below pre-duty hike levels, Kedia said. "December rate hike expectations are increasing, hence prices are falling," Kedia added, referring to the possibility of the US Fed raising interest rates. Typically, higher interest rates reduce the appeal of the non-interest-bearing precious metal, as the opportunity cost rises.
Demand for gold jewellery has remained subdued in recent weeks, particularly in southern India, due to elevated prices. However, the correction could encourage buyers to return to the market, Kedia said. End
Edited by Avishek Dutta
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