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Gold prices in India have witnessed another sharp rise, with rates climbing significantly across major cities on May 7. The renewed rally in precious metals comes amid easing geopolitical tensions in West Asia and a decline in global crude oil prices, factors that have boosted investor confidence in safe-haven assets like gold and silver.

In the national capital, the price of 22-carat gold surged past ₹1.39 lakh per 10 grams, while 24-carat gold crossed ₹1.52 lakh. Silver prices also moved higher, continuing their strong momentum in the domestic bullion market.

The latest increase has once again caught the attention of investors, jewellers, and consumers, especially during a period when global economic uncertainty and inflation concerns continue to influence commodity markets worldwide.

Gold Prices Rise Sharply Across India

According to market data released on May 7, gold prices increased in nearly all major Indian cities. In Delhi, 24-carat gold climbed to ₹1,52,290 per 10 grams, while 22-carat gold reached ₹1,39,610 per 10 grams.

A day earlier, gold in Delhi’s bullion market had already jumped by nearly ₹2,900, registering an increase of around 2 percent. Analysts say the rally reflects stronger demand for precious metals in both international and domestic markets.

In Mumbai, 24-carat gold was priced at ₹1,52,140 per 10 grams, while 22-carat gold stood at ₹1,39,460.

Meanwhile, Chennai continued to record some of the highest gold rates in the country. The price of 24-carat gold there rose to ₹1,53,830 per 10 grams, while 22-carat gold touched ₹1,41,010.

Other major cities, including Kolkata, Hyderabad, Ahmedabad, Jaipur, Lucknow, Chandigarh, and Bhopal, also reported a noticeable increase in bullion prices.

Why Are Gold Prices Increasing?

Market experts believe several global developments are supporting the current rally in gold and silver.

One of the key reasons is the easing of tensions in West Asia. Reports suggest that the United States and Iran may be moving closer to a framework agreement aimed at ending the conflict that has continued since February. This has improved hopes for smoother trade movement through the strategically important Strait of Hormuz.

At the same time, falling crude oil prices have reduced concerns about global inflation, prompting investors to increase their exposure to precious metals.

Gold is traditionally considered a safe investment during periods of economic uncertainty, currency volatility, and geopolitical instability. Even when tensions begin to ease, investors often continue buying gold as a hedge against future risks.

Another factor supporting prices is strong international demand. In the global market, spot gold was trading around $4,663.70 per ounce, reflecting sustained investor interest.

Gold Rates in Major Indian Cities

Here are the latest gold prices recorded in key Indian cities on May 7:

Silver Prices Also Witness Strong Rally

Silver prices also registered a sharp increase in the domestic market. On May 7, silver was trading at around ₹2,65,100 per kilogram in India.

In the international market, spot silver was quoted near $76.24 per ounce.

Just a day earlier, silver prices in Delhi’s bullion market had jumped by nearly ₹3,500, or approximately 1.4 percent, reaching ₹2,54,500 per kilogram.

Silver has remained highly volatile this year. Earlier in January, prices in India had crossed the ₹4 lakh per kilogram mark, highlighting the metal’s sharp fluctuations amid changing global economic conditions.

Domestic and Global Factors Driving Precious Metal Prices

Experts say gold and silver prices in India are influenced by a combination of domestic and international factors.

Global interest rates, the strength of the US dollar, geopolitical developments, inflation expectations, central bank policies, and crude oil prices all play a major role in determining market direction.

At the domestic level, demand during wedding seasons, festive buying, import duties, and rupee-dollar exchange rates also affect bullion prices.

With uncertainty still lingering in global financial markets, analysts believe gold and silver may continue to remain volatile in the coming weeks.

For investors, the recent rally highlights the continued importance of precious metals as a traditional store of value during uncertain economic conditions.