MUMBAI, April 7, 2026, 01:42 IST
Gold prices in India fell on Monday, with June futures on the Multi Commodity Exchange, or MCX, the country’s main commodity bourse, dropping nearly 1% in early trade and major jewellers cutting 22-carat retail rates. The move tracked weaker spot prices and a market unsettled by a firmer dollar and the Middle East conflict. 1
The retreat matters because it is starting to reach store counters after a sharp FY26 climb, when gold rose 67% and silver 142.2% on MCX. It also comes after high prices pushed many Indian buyers away from jewellery and toward bars, coins and exchange-traded funds, with the World Gold Council saying 2026 demand could fall to 600-700 tonnes as weaker jewellery buying offsets firmer investment demand. 2
The timing could still help retailers. Tanishq chief executive Arun Narayan said softer prices may lift bookings ahead of Akshaya Tritiya on April 19 and the April-July wedding season, while Reuters reported late-March buying improved as prices eased, though many shoppers were still waiting for a deeper fall. 3
On MCX, gold June futures fell Rs 1,400 to Rs 1,48,298 per 10 grams and silver May slipped more than Rs 2,800 to Rs 2,29,651 per kg. Globally, spot gold was down 0.4% at $4,654.99 an ounce by early U.S. afternoon, while U.S. gold futures settled 0.1% higher at $4,684.70, with traders watching the Strait of Hormuz deadline, Federal Reserve minutes and U.S. inflation readings due later this week. A stronger-than-expected U.S. payrolls report on Friday, showing 178,000 jobs added in March and unemployment at 4.3%, also dented hopes for a near-term rate cut. 1
Retail price boards reflected the drop. ET reported Tanishq listed 22-carat gold at Rs 13,710 a gram in Delhi, Mumbai, Chennai, Kolkata and Bengaluru, down from Rs 13,875 on April 4, while Kalyan Jewellers and Malabar Gold & Diamonds were at Rs 13,670, down from Rs 13,835. The India Bullion and Jewellers Association, whose daily rates are used as a benchmark across the trade, showed a morning 22-carat rate of Rs 14,434 a gram. 4
Manoj Kumar Jain of Prithvifinmart Commodity Research said traders should book profits “on every rise” and wait for a corrective dip. Jigar Trivedi, senior research analyst at IndusInd Securities, said gold had already dropped about 12% since the conflict began and could test Rs 1,47,500 in the near term, with Rs 1,49,500 acting as resistance, or a likely ceiling. 1
The medium-term view is less bearish. Aamir Makda, commodity and currency analyst at Choice Broking, told PTI the FY27 outlook would remain “moderately bullish” because geopolitical stress, trade-war worries and recession fears could sustain demand for safe-haven assets, which investors often buy in periods of stress. He said silver could trade at Rs 2.75 lakh to Rs 3.5 lakh per kg domestically, while central bank buying should continue to support gold. 2
But the next leg could still turn on oil and interest rates. TD Securities’ Bart Melek said the focus would stay on “the war and interest rates”, and that if higher crude feeds inflation, the U.S. Federal Reserve will have less room to cut rates, which is negative for gold because it pays no interest. Makda also warned that a longer spell of high rates could cap further gains. 5
For now, softer prices may bring some shoppers back, but not all. Reuters reported Indian dealers were still offering discounts of up to $61 an ounce in late March and said many buyers were waiting for a deeper correction, a sign that volatility is still tempering jewellery demand even as investment buying remains firm. 6
