Gold prices in India surged on May 22, tracking a global rally driven by rising safe-haven demand amid geopolitical tensions, weak U.S. Treasury bond sales, and a falling U.S. dollar.
As per Goodreturns data, the price of 24K gold in India hit ₹97,910 per 10 grams, while 22K gold was priced at ₹89,750. 18K gold stood at ₹73,440.
The sharp increase reflects a broader global trend, with gold prices climbing to a two-week high as investors sought refuge in the precious metal.
Global Gold Hits Two-Week High
Spot gold rose by 0.7% to $3,336.43 an ounce, the highest level since May 9. U.S. gold futures also advanced by 0.7%, reaching $3,337.60 per ounce.
Meanwhile, the U.S. dollar hovered near a two-week low, making dollar-denominated gold more attractive to foreign investors.
“Gold’s bullish reversal is supported by a weaker U.S. dollar and persistent stagflation risks,” noted Kelvin Wong, Senior Market Analyst at OANDA.
Key Factors Driving Gold’s Rise
Weak U.S. Treasury Demand: A recent $16 billion 20-year U.S. bond auction received a poor response, reflecting declining investor appetite for U.S. assets.
Credit Rating Concerns: Moody’s recently downgraded the U.S. credit outlook due to rising national debt, further weakening confidence in U.S. financial instruments.
Geopolitical Risks: Rising tensions in the Middle East, combined with renewed uncertainty in U.S.-China trade relations, have pushed investors toward gold as a safe-haven asset.
Safe-Haven Demand: Ongoing geopolitical concerns, including upcoming talks between the U.S. and Iran scheduled for May 23, have added to the appeal of gold.
Bullion Support and Resistance Levels
Rahul Kalantri, Vice President of Commodities at Mehta Equities, outlined key support and resistance levels for gold in India. Gold is currently supported at ₹95,310–₹95,080 per 10 grams and faces resistance at ₹95,950–₹96,240 per 10 grams.
Outlook: Further Upside Expected
With global economic and geopolitical uncertainties expected to persist, analysts predict continued strength for gold.
“Gold seems to be resuming its long-term uptrend. I’m targeting highs around $3,450–$3,500 per ounce from here,” said Ilya Spivak, Head of Global Macro at Tastylive.
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