Following the recent ceasefire and positive developments in global trade talks, there has been a significant shift in bullion prices. On May 12, the price of gold witnessed a sharp decline, while silver prices saw a modest increase. According to the India Bullion and Jewellers Association (IBJA), 24-carat gold dropped by Rs 2,023 per 10 grams, bringing its price down to Rs 94,393. In contrast, silver prices rose by Rs 191 to Rs 95,917 per kilogram.
IBJA releases bullion rates twice daily once around noon and again around 5 PM. These rates do not include GST, and there can be a variation of Rs 1,000 to Rs 2,000 depending on the city. Since the beginning of the year, gold prices have surged by approximately Rs 18,653, and silver by Rs 9,900. Notably, gold hit a high of Rs 99,100 per 10 grams on April 22, 2025. On December 31, 2024, gold was priced at Rs 76,045 per 10 grams, while silver stood at Rs 85,680 per kg. Compared to its recent peak, gold has now become cheaper by Rs 4,707.
As per IBJA data:
23-carat gold fell by Rs 2,025 to Rs 94,015 per 10 grams.
22-carat gold saw a drop of Rs 1,853 to Rs 86,464 per 10 grams.
18-carat gold declined by Rs 1,517 to Rs 70,795 per 10 grams.
14-carat gold dipped by Rs 1,183 to Rs 55,220 per 10 grams.
This sharp correction is largely attributed to easing geopolitical tensions, including hopes of a US-China trade deal and the India-Pakistan ceasefire. These developments have boosted investor confidence, reducing the demand for gold as a safe-haven asset and triggering a price drop in the international bullion market.
On the MCX (Multi Commodity Exchange), gold opened at ₹95,500 per 10 grams. By morning, it had slipped by Rs 2,253 (2.33%) to Rs 94,265. Meanwhile, silver was trading at Rs 96,151 per kg, up Rs 578 (0.60%).
Internationally, spot gold fell 1.4% to $3,277.68 per ounce, while US gold futures dropped 1.9% to $3,281.40 per ounce—further underscoring the bearish sentiment.