Gold prices in India saw a sharp decline on Monday, May 12, following positive developments in the US-China trade talks and a ceasefire agreement between India and Pakistan. The MCX gold price dropped by Rs 2,424, marking one of the most significant single-day declines in May. Specifically, the price of 24-carat gold fell by Rs 18,000 for 100 grams and Rs 1,800 for 10 grams.
Global Market Sentiment Drives Gold Prices Lower
The plunge in domestic gold prices mirrors the trend in international markets, where gold saw a sharp fall due to growing optimism over US-China trade negotiations. As tensions ease, demand for gold as a safe-haven asset diminished. “Gold prices dropped sharply across Asian markets as US-China trade talks showed signs of progress and geopolitical tensions eased. Last week, gold and silver experienced high volatility, bouncing back due to rising Indo-Pak tensions and interest rate cuts by the Bank of England. Despite this, the steady strength of the dollar index, unchanged US interest rates, and positive news from trade talks are limiting the gains in precious metals,” said Rahul Kalantri, VP of Commodities at Mehta Equities.
As of early Monday trading, the MCX gold price for June 2025 delivery plunged by Rs 2,424, hitting an intraday low of Rs 94,094 per 10 grams. At the time of writing, gold traded at Rs 94,244 per 10 grams, reflecting a 2.4% decline.
Silver Price Declines at a Slower Pace
Meanwhile, MCX silver prices for July 2025 expiry also witnessed a sharp drop of Rs 976, hitting an intraday low of Rs 95,753 per kg. However, silver’s decline was less pronounced than gold’s. By mid-morning, silver prices had fallen by 0.53% or Rs 508, trading at Rs 96,221 per kg.
Gold and Silver Price Breakdown in India
In India, the price of 24-carat gold for 100 grams dropped by Rs 18,000, reaching Rs 9,68,800. Meanwhile, 22-carat and 18-carat gold prices fell by Rs 16,500 and Rs 13,500, respectively, bringing their prices to Rs 8,88,000 and Rs 7,26,600.
For 10 grams, the price of 24-carat gold decreased by Rs 1,800 to Rs 96,880, while 22-carat and 18-carat gold prices saw reductions of Rs 1,650 and Rs 1,350, bringing them to Rs 88,800 and Rs 72,600, respectively.
Silver Prices in India
Silver prices in India also saw a dip. The price of 1 kg of silver fell by Rs 100, settling at Rs 98,900. The prices for 100 grams and 10 grams decreased by Rs 10 and Re 1, respectively, to Rs 9,890 and Rs 989. The price for 1 gram of silver stood at Rs 98.90.
Spot Gold Performance
On the global stage, gold fell over 1%, reaching around $3,260, its lowest in a week. This decline was largely driven by optimism over the US-China trade talks, which dampened gold’s appeal as a safe haven. After the weekend talks, both the US and China signaled progress, with China planning to initiate formal negotiations and the US highlighting positive developments in the trade discussions. Treasury Secretary Scott Bessent also indicated further details would be provided in a briefing on Monday.
Analysts’ Outlook and Support-Resistance Levels
Analysts predict that gold has support at $3,255–$3,235, with resistance at $3,300–$3,325. For silver, support is expected at $32.27–$31.95, with resistance at $32.90–$33.70. In Indian Rupee terms, gold has support at Rs 95,550–Rs 94,980, and resistance at Rs 96,950–Rs 97,340. Silver has support at Rs 95,880–Rs 94,550, and resistance at Rs 97,550–Rs 98,250.
Should You Buy Gold and Silver on Dips?
Gold prices are expected to see further correction. Traders are advised to sell at Rs 95,500, with a stop loss at Rs 95,900, targeting Rs 95,000–Rs 94,500, according to Nirmal Bang’s technical report for May 12.
Similarly, silver prices are also predicted to correct. Traders can consider selling at Rs 96,500, with a stop loss at Rs 97,200, and a target range of Rs 95,500–Rs 94,700.
As the market adjusts to the evolving global trade dynamics, gold and silver prices may continue to experience fluctuations, offering opportunities for traders to capitalize on dips.
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