After a steady decline, gold prices in India bounced back on Monday, May 5, signaling renewed interest among investors amid global economic concerns and shifting market trends.
Gold Prices Recover Across Major Indian Cities
In Mumbai, 22-carat gold traded at ₹87,750 per 10 grams, while the purer 24-carat variety stood at ₹95,730. The rebound follows a significant correction of over ₹7,000 from the recent peak when prices flirted with the ₹1 lakh mark, largely fueled by rising global inflation and fears of a potential U.S. recession.
Gold continues to serve dual purposes in India—as a cultural asset and a strategic investment. While 24-carat gold appeals to buyers seeking high purity, 22-carat remains popular for its resilience and traditional appeal, especially during festive and wedding seasons.
| City | 22-Carat (₹/10g) | 24-Carat (₹/10g) |
|---|---|---|
| Delhi | ₹88,100 | ₹96,200 |
| Chennai | ₹88,950 | ₹97,050 |
| Kolkata | ₹87,750 | ₹95,730 |
| Bangalore | ₹87,600 | ₹95,500 |
Meanwhile, silver prices slipped, with rates dropping by ₹1,000 per kilogram to ₹97,000 in Mumbai, according to GoodReturns.
Key Drivers Behind Market Movements
Multiple variables continue to shape gold’s price trajectory. Global market rates, currency exchange fluctuations, import duties, and local taxes are primary influencers. Investors are also reacting to dovish U.S. Federal Reserve signals and geopolitical uncertainties that increase gold’s appeal as a safe-haven asset.
Domestically, gold holds deep emotional and financial significance. From family heirlooms to wedding gifts, it is embedded in Indian traditions. That said, the investment rationale is also strong—especially when inflation fears or currency devaluation pressures loom.
As the rupee hovers around crucial support levels and central banks diversify reserves, analysts expect continued volatility. The current rally in bullion prices might attract short-term traders while long-term investors could view the dip from recent highs as a strategic entry point.
For real-time rates and deeper financial analysis, visit the Reserve Bank of India or track updates through trusted financial portals.