In the volatile world of precious metals, gold has recently experienced a notable price correction, pausing for reflection during the weekend after a tumultuous trading week. The yellow metal, often considered a safe-haven asset during times of uncertainty, has seen its appeal diminish as global tensions ease and investor sentiment improves.
Recent Price Movements
Gold prices remained stable on Saturday, with expectations of similar performance on Sunday, May 18. This stability comes after a dramatic week that saw 24-carat gold (100 grams) plummet by Rs 35,500, while 10-gram gold prices decreased by Rs 3,550 between May 12-16. This significant correction represents one of the most substantial selling periods of May 2025.
The price movements throughout the week were far from uniform. On May 12, 24-carat gold prices fell by Rs 32,200 per 100 grams, followed by additional declines of Rs 5,400 on May 14 and Rs 21,300 on May 15. However, the market did see some recovery with increases of Rs 11,400 and Rs 12,000 on May 13 and May 16, respectively. Despite these temporary rebounds, gold has recorded an overall decline of 1% across all carats this month.
Factors Behind the Correction
The primary catalyst for this substantial price correction appears to be easing global tensions. Most notably, a temporary 90-day tariff truce between the United States and China has played a crucial role in calming market anxieties. Under this agreement, the US has reduced tariffs on Chinese goods from 145% to 30%, while China has responded by cutting tariffs on US imports from 125% to 10%. This mutual scaling back signals a willingness to de-escalate the long-standing trade conflict.
Additionally, geopolitical tensions have somewhat subsided, with the India-Pakistan ceasefire holding firm. However, negotiations between Russia and Ukraine have shown signs of stalling, which maintains an undercurrent of uncertainty in global markets.
Economic Indicators and Market Outlook
On the economic front, US inflation data came in lower than anticipated, with the annual Consumer Price Index (CPI) easing to 2.3% in April—its lowest level since February 2021 and below market expectations of 2.4%. This softer inflation data has reinforced expectations that the Federal Reserve may implement at least two rate cuts this year. However, Federal Reserve Chair Jerome Powell has cautioned that inflation could become more volatile due to frequent supply shocks, potentially complicating monetary policy decisions.
Also Read:
PM Kisan Yojana सभी किसानो के लिए खुशखबरी 20वीं क़िस्त के 4000 रूपए इस दिन खाते में आने वाले है
For the upcoming trading week, gold and silver are expected to trade within ranges of Rs 88,000-95,000 and Rs 91,000-98,000, respectively. Technical analysis suggests that if gold breaks below the $3,200 level, it could potentially decline toward $3,000, with resistance near $3,295. In the domestic market, MCX Gold may fluctuate between Rs 90,500-96,000, while Silver could range from Rs 91,800-97,500.
Current Price Points
As of May 17, 100 grams of 24-carat gold is priced at Rs 951,300, with 18-carat and 22-carat gold available at Rs 713,500 and Rs 872,000, respectively. For 10-gram quantities, prices stand at Rs 95,130 for 24-carat, Rs 87,200 for 22-carat, and Rs 71,350 for 18-carat gold.
Silver has also followed gold’s downward trajectory, with the price of 1kg currently at Rs 97,000, while 100 grams and 10 grams are priced at Rs 9,700 and Rs 970, respectively.
Also Read:
Rooftop Solar Scheme अब बिना खर्च के घर पर लगवाएं सोलर पैनल, सरकार दे रही ₹1.08 लाख की सब्सिडी
Investor Demand Remains Strong
Despite falling prices, investor interest in gold remains robust. Gold ETFs recorded impressive net inflows of 115 tons in April alone—the highest in over three years—driven largely by Chinese investors seeking stability in uncertain times.
As the precious metals market navigates through these fluctuations, investors and consumers alike should keep a close eye on both global economic indicators and geopolitical developments that could influence price movements in the coming weeks.
