Gold Prices Fall for Second Straight Day as Silver Slips After Three-Day Rally

Gold prices in India continued to decline for the second consecutive day on May 12, 2026, while silver prices also moved lower after remaining stable for the past three trading sessions. The latest dip in precious metal prices comes amid a stronger US dollar, volatile crude oil prices, and ongoing geopolitical uncertainty linked to tensions between the United States and Iran.

Market experts say the lack of progress in peace discussions between the two countries, combined with fluctuations in global commodity markets, has influenced investor sentiment toward safe-haven assets like gold. Although geopolitical tensions generally support gold prices, the strengthening US dollar and sharp rise in crude oil prices have created pressure on bullion markets.

As a result, both gold and silver witnessed fresh corrections in domestic markets today.

Gold Becomes Cheaper for the Second Day in a Row

Gold prices have softened continuously over the past two days after witnessing a strong rally earlier this month.

According to market data:

• 24-carat gold has become cheaper by around ₹230 per 10 grams over the last two days.
• 22-carat gold has fallen by nearly ₹210 during the same period.

In the national capital Delhi, the price of 24-carat gold declined by ₹10 per 10 grams today, while 22-carat gold also slipped by ₹10.

Jewellery traders say the correction is mainly linked to international market pressure and profit-booking by investors after gold touched record-high levels recently.

Why Gold Prices Are Falling

Several global factors are currently affecting gold prices.

Stronger US Dollar

A stronger American dollar usually makes gold more expensive for international buyers, reducing demand in global markets. This often leads to pressure on bullion prices.

Crude Oil Price Volatility

The sharp increase in crude oil prices due to West Asia tensions has also affected commodity markets. Rising oil prices increase inflation concerns and impact investor strategies across global asset classes.

US-Iran Tensions

The ongoing geopolitical conflict between the United States and Iran continues to create uncertainty in international markets. However, analysts say the absence of a clear diplomatic breakthrough has increased volatility instead of supporting sustained safe-haven buying in gold.

Latest Gold Rates in Major Indian Cities

Here are the latest prices of 24-carat, 22-carat, and 18-carat gold for 10 grams across major Indian cities:

Among the listed cities, Chennai currently has the highest gold prices for all three purity categories.

Silver Prices Also Decline After Three Days of Stability

Silver prices also weakened today after remaining unchanged for three consecutive sessions.

Before today’s decline, silver had witnessed a sharp rally in recent days, with prices rising by nearly ₹20,000 per kilogram during the previous three sessions.

Now, after the latest correction:

• Silver prices in Delhi have declined by ₹100 per kilogram.
• The metal is currently trading at around ₹2,74,900 per kilogram in Delhi.

Similar prices are being seen in Mumbai and Kolkata.

However, Chennai continues to report significantly higher silver rates compared to other metro cities.

Latest Silver Rates in Major Cities

Among the four major metro cities, Chennai currently has the most expensive silver prices.

Investors Watching Global Developments Closely

Precious metal markets are likely to remain volatile in the coming days as investors closely track international developments.

Analysts believe key factors influencing gold and silver prices include:

• Movement in crude oil prices
• US dollar strength
• Interest rate expectations
• Global inflation trends
• Geopolitical tensions in West Asia
• Central bank policies

Any major escalation in global conflict or sudden movement in the dollar index could trigger fresh volatility in bullion markets.

Should Buyers Wait or Purchase Now?

Jewellery buyers and investors are currently divided over market direction.

Some experts believe the recent correction may offer a short-term buying opportunity for long-term investors, especially during the ongoing wedding and festive demand season in India.

Others caution that global uncertainty may continue to keep prices highly volatile over the next few weeks.

Consumers planning to buy gold jewellery are being advised to compare city-wise prices carefully and also check making charges, GST, and hallmark certification before making purchases.

With international tensions and commodity markets remaining unstable, precious metal prices are expected to remain sensitive to global developments in the near future.