Gold prices in India climbed sharply on May 22, reflecting gains in global markets. The price of 24K gold rose to ₹97,910 per 10 grams, while 22K and 18K varieties traded at ₹89,750 and ₹73,440 respectively, according to Goodreturns data.
Global gold reached a two-week high, with spot gold up 0.7% at $3,336.43 per ounce and U.S. futures also rising 0.7% to $3,337.60. The U.S. dollar hovered near a two-week low, boosting demand for dollar-priced gold among foreign investors.
Kelvin Wong, Senior Market Analyst at OANDA, noted, “Gold’s bullish reversal is supported by a weaker U.S. dollar and lingering stagflation risks.”
Key Drivers Behind Gold’s Rise
- Weak demand for U.S. Treasury bonds, highlighted by a $16 billion 20-year bond auction drawing poor interest.
- Moody’s recent downgrade of the U.S. credit outlook amid rising debt concerns.
- Heightened geopolitical tensions in the Middle East and renewed U.S.-China trade uncertainties.
- Upcoming U.S.-Iran nuclear talks scheduled for May 23, increasing safe-haven demand.
Technical Outlook
Rahul Kalantri, VP Commodities at Mehta Equities, identified support for gold at ₹95,080–₹95,310 and resistance near ₹95,950–₹96,240 per 10 grams.
Ilya Spivak, Head of Global Macro at Tastylive, expects gold to continue its upward trajectory, targeting $3,450–$3,500 per ounce amid ongoing global uncertainties.
