Gold Rate In India Under Pressure, Crashed By Rs 36,600 In 10 Days: 24K, 22K, 18K Gold Price Outlook On May 21

Gold rates in India have continued to be under pressure. On Tuesday, 24K gold price dropped by at least Rs 490 in 10 grams and Rs 4,900 in 100 grams. In the past 10 days, the price of 100 grams gold crashed by approximately Rs 36,600 in 24 carat. Silver rates have also dropped significantly. A ceasefire talk between Russia and Ukraine will be among driving factors for precious metals on Wednesday, May 21.

Unlike gold prices at retail stores of India, on MCX, 10 grams of gold price surged nearly 2% tracking the rally in international prices on Tuesday. Appetite for trading in gold surged after dollar weakened.

Precious metals are driven by a weaker US dollar and heightened safe-haven demand following Moody's downgrade of the US credit rating from "Aaa" to "Aa1," citing rising federal debt and elevated interest costs, said Kaynat Chainwala, AVP-Commodity Research, Kotak Securities in a note.

Gold Prices In India:

Gold prices in 24 carat declined by Rs 4,900 in 100 grams to Rs 9,50,200 and down by Rs 490 to Rs 95,020 in 10 grams on May 20th. Further, 22 carat of 100 grams gold plunged by Rs 4,500 to Rs 8,71,000 and that of 10 grams gold dipped by Rs 450 to Rs 87,100. Finally, 18 carat gold price slipped by Rs 3,600 in 100 grams to Rs 7,12,700 and shed Rs 360 to Rs 71,270 per 10 grams.

Gold Prices In India Performance For 10 Days:

Apart from falling by Rs 4,900 on May 20th, 100 grams of gold price in 24 carat declined by Rs 21,300 on May 15, while it was lower by Rs 5,400 on May 14, and down by Rs 32,200 on May 12. Last week gold prices saw their biggest selling of May month. Notably, 100 grams gold price was unchanged on three occasions namely May 11th, May 17th and May 18th.

However, gold prices surged by Rs 11,400 on May 13th, and was up by Rs 12,000 on May 16th and up Rs 3,800 on May 19.

Taking into consideration the above performance, gold prices declined by Rs 36,600 in 100 grams and by Rs 3,660 in 10 grams for 24 carat in overall 10 days.

Gold Prices In Major Cities:

The price of gold in Chennai is currently at Rs 9,502 per gram for 24 karat gold, at Rs 8,710 per gram for 22 karat gold and at Rs 7,180 per gram for 18 karat gold (also called 999 gold).

Silver Prices In India:

Additionally, silver prices dropped sharply in past 10 days as well. On May 20th, silver prices in India declined by Rs 1,000 in 1 kg, which comes after a surge of Rs 1,000 on May 19th. Silver rates were unchanged on May 18th, May 17th, and May 16th. Meanwhile, silver prices are down by Rs 900 on May 15, lower by Rs 1,000 on May 13, and dipped by Rs 100 on May 12.

At present, silver price in India is at Rs 97,000 per 1kg, while 100 grams and 10 grams silver is priced at Rs 9,700 and Rs 970.

MCX Gold, Silver Prices:

After trading volatile, MCX gold price, with June 2025 expiry, closed at Rs 94,899 per 10 grams on May 2th, higher by Rs 1,602 or 1.72%.

However, MCX silver price, with July 2025 expiry, stood at Rs 97,288 per 1kg, broadly flat.

"The US dollar slipped to a one-week low amid growing concerns over the country's economic outlook and fiscal health. Adding to market uncertainty, Treasury Secretary Bessent warned of potential tariffs unless trade partners negotiate in "good faith." Federal Reserve officials maintained a cautiously optimistic tone, as they also voiced concern about inflation risks from trade-related tariffs. Atlanta Fed President Raphael Bostic said the central bank may only be able to cut interest rates by a quarter-point for the rest of the year due to inflation pressures. Similarly, Fed Vice Chair Philip Jefferson emphasized a wait-and-see approach, noting the importance of preventing a temporary rise in prices from becoming entrenched inflation. Geopolitical tensions in the Middle East also supported gold prices, with Israel intensifying attacks in Gaza and Yemen," said the analyst's note.

Looking ahead, the analyst pointed out that Trump said Ukraine and Russia would "immediately start negotiations" toward a ceasefire. Investors are also awaiting speeches from several Fed officials later today for monetary policy cues. However, sharp downside may be limited ahead of a key House vote on President Trump's major tax and spending package, which could further widen the US fiscal deficit.

Spot Gold Price:

Gold climbed 2% to above $3,285 per ounce on Tuesday, buoyed by a weaker US dollar and heightened geopolitical uncertainty. Explaining ahead, Trading Economics data said, a softer greenback makes gold more affordable for international buyers, boosting demand. Investor sentiment was further shaken by ongoing uncertainty around US tariff policy and a key vote on President Trump's sweeping tax cuts. Geopolitical tensions also contributed to safe-haven flows after Trump said Ukraine and Russia would "immediately" begin ceasefire talks, possibly without US participation. New sanctions from the EU and UK against Russia reinforced the tense global backdrop, adding to bullion's appeal.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.