Gold prices eased on Monday after last week’s rally as renewed tensions in West Asia, elevated crude oil prices, and a stronger dollar weighed on bullion sentiment, while analysts said Prime Minister Narendra Modi’s appeal to avoid non-essential gold purchases for a year may temporarily dent retail sentiment but is unlikely to alter India’s long-term demand outlook.
COMEX gold traded near the $4,655-$4,700 per ounce range, while silver hovered around $79-$81 per ounce as investors assessed geopolitical developments surrounding the US-Iran conflict and the possibility of prolonged volatility in oil markets.
According to Gaurav Garg, research analyst at Lemonn Markets Desk, gold prices declined as rising geopolitical tensions and the recent jump in crude oil prices intensified inflation concerns. He noted that silver remained relatively resilient due to steady retail demand ahead of the wedding season, while crude oil surged after US President Donald Trump rejected Iran’s response to a US-backed proposal, heightening fears around the ongoing West Asia conflict.
Analysts said bullion markets have turned cautious after optimism over progress in US-Iran negotiations faded. Manav Modi, commodities analyst at Motilal Oswal Financial Services, said gold prices came under pressure from a firm dollar and elevated oil prices after Trump termed Tehran’s counteroffer “totally unacceptable”. He added that concerns over shipping disruptions through the Strait of Hormuz — a key global oil transit route — continue to keep markets volatile.
Experts also pointed to domestic concerns after Prime Minister Modi urged citizens to postpone non-essential gold purchases for a year as part of a broader self-reliance push aimed at reducing pressure on India’s foreign exchange reserves amid rising crude prices and geopolitical uncertainty.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said the appeal should be viewed from the perspective of macroeconomic stability and import management, as India remains one of the world’s largest gold importers. He said elevated crude prices and higher gold imports increase pressure on the trade deficit and the rupee. However, he added that the appeal is unlikely to significantly alter long-term gold demand because of gold’s cultural and investment importance in India, though discretionary jewellery purchases could slow in the near term.
Kaynat Chainwala, AVP – Commodity Research at Kotak Securities, said global cues including crude oil prices, the dollar index, and the trajectory of US-Iran negotiations would remain the dominant drivers for bullion this week. She noted that while Modi’s remarks had already impacted jewellery stocks, there was no regulatory mechanism to curb purchases, making the impact largely sentiment-driven.
Analysts expect volatility to persist through the week as investors track US inflation data, Federal Reserve commentary, crude oil prices, and geopolitical headlines. Renisha Chainani, Head of Research at Augmont, said gold and silver had touched the upper end of their recent trading ranges and could witness profit-booking in the near term. She added that industrial metals such as copper and aluminium may also remain under pressure amid concerns over global growth and supply disruptions linked to the Hormuz conflict.
Published on May 11, 2026
