Gold prices increased across major Indian cities on Thursday, May 7, with rates for both 24-karat and 22-karat gold witnessing a rise of up to Rs 2,000. Silver prices also registered a sharp jump of nearly Rs 10,000.

Among the metro cities, Chennai recorded the highest gold prices, followed by Hyderabad, Bengaluru and Mumbai.

Bullion prices remain firm after sharp global rally

Bullion prices remained steady after witnessing the biggest single-day rise since late March. According to Bloomberg, the surge came amid hopes of easing tensions in the ongoing US-Iran conflict, which contributed to falling oil prices and reduced inflation concerns.

Gold was trading above $4,690 an ounce after recording a 3 percent jump on Wednesday, May 6.

Retail buyers may pay additional charges

Consumers purchasing jewellery should note that the listed gold and silver prices may not reflect the final amount payable at stores. Jewellers generally add making charges, taxes and GST to the final bill, increasing the overall cost for retail buyers.
City-wise rates today

City24K Gold Price (10 gms)22K Gold Price (10 gms)Silver Price (1 kg)
New DelhiRs 1,52,190Rs 1,39,508Rs 2,53,180
MumbaiRs 1,52,450Rs 1,39,746Rs 2,53,620
KolkataRs 1,52,250Rs 1,39,563Rs 2,53,280
BengaluruRs 1,52,570Rs 1,39,856Rs 2,53,820
ChennaiRs 1,52,900Rs 1,40,158Rs 2,54,360
HyderabadRs 1,52,690Rs 1,39,966Rs 2,54,020
KeralaRs 1,58,140Rs 1,39,460Rs 2,75,100

Gold prices in India are influenced by several economic factors that work together to affect daily rates. One of the biggest factors is the strength of the Indian rupee against the US dollar. Since India imports a large quantity of gold, a weaker rupee makes imports more expensive, often leading to higher gold prices in the domestic market.

International developments also have a strong impact on gold rates. Changes in global economic policies, concerns over slowing growth, geopolitical tensions and fluctuations in the US dollar can all influence how gold is priced in India.

Demand within the country is equally important. During periods of high buying activity, especially during festivals and wedding seasons, gold prices tend to rise. On the other hand, weaker demand can ease prices.

Interest rates in major economies, particularly the United States, also affect investor behaviour. When interest rates increase, many investors move towards assets that generate returns through interest, which can reduce demand for gold. However, when rates are lower, gold often becomes more attractive as a safe investment option.

Government measures can also shape the gold market. If prices rise sharply or concerns grow over the current account deficit, authorities may introduce policies aimed at reducing gold imports and controlling overall economic pressure, especially because India remains one of the world’s largest consumers of gold.