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Gold prices witnessed a decline across major Indian cities on Monday, giving some relief to buyers after the sharp rally seen last week. On May 18, domestic bullion markets opened lower as international gold prices weakened amid a stronger US dollar and cautious investor sentiment linked to global geopolitical tensions.

In the national capital Delhi, the price of 22-carat gold dropped to ₹1,43,990 per 10 grams, while 24-carat gold slipped to ₹1,57,070 per 10 grams. The correction comes after gold prices surged significantly in the previous week, when 24-carat gold had jumped by nearly ₹6,540 and 22-carat gold rose by around ₹6,470.

Market analysts believe the recent pullback is mainly driven by dollar strength and uncertainty surrounding global economic and geopolitical developments.

Why Gold Prices Are Falling

Experts say the strengthening of the US dollar has put pressure on international gold prices. A stronger dollar generally reduces the attractiveness of gold for global investors because the precious metal becomes more expensive in other currencies.

Apart from currency movements, ongoing tensions between the United States and Iran are also keeping investors cautious. Concerns remain over the lack of progress in diplomatic negotiations and uncertainty regarding the strategic Strait of Hormuz, a crucial global energy shipping route.

Any disruption in crude oil and gas supply through the region could increase global inflationary pressure. Rising inflation concerns may force central banks across the world to keep interest rates elevated for a longer period.

Higher interest rates often reduce the appeal of non-interest-bearing assets like gold, which is another reason for the recent price correction.

According to reports, international spot gold prices declined to around $4,488.99 per ounce, marking one of the lowest levels seen since late March 2026.

Latest Gold Prices in Major Indian Cities

Gold prices vary slightly across cities due to local taxes, transportation charges, and jeweller margins.

Here are the latest gold rates for May 18:

City	22-Carat Gold (₹ per 10 gm)	24-Carat Gold (₹ per 10 gm)
Delhi	₹1,43,990	₹1,57,070
Mumbai	₹1,43,840	₹1,56,920
Ahmedabad	₹1,43,890	₹1,56,970
Chennai	₹1,47,490	₹1,60,900
Kolkata	₹1,43,840	₹1,56,920
Hyderabad	₹1,43,840	₹1,56,920
Jaipur	₹1,43,990	₹1,57,070
Bhopal	₹1,43,890	₹1,56,970
Lucknow	₹1,43,990	₹1,57,070
Chandigarh	₹1,43,990	₹1,57,070

Among major cities, Chennai continued to report the highest gold prices, with 24-carat gold nearing ₹1.61 lakh per 10 grams.

Mumbai and Kolkata Prices Also Decline

In Mumbai and Kolkata, the price of 22-carat gold fell to ₹1,43,840 per 10 grams, while 24-carat gold was trading at ₹1,56,920.

Bullion traders say the decline is relatively modest compared to the sharp rise seen over the last few sessions. Many investors are currently adopting a wait-and-watch approach because of uncertainty in global commodity markets.

Chennai Continues to Trade at Premium

Gold rates in Chennai remained significantly higher than most other Indian cities.

The latest rates in Chennai stood at:

• 22-carat gold: ₹1,47,490 per 10 grams
• 24-carat gold: ₹1,60,900 per 10 grams

Experts attribute the higher pricing in southern markets to local demand trends and regional market premiums.

Silver Prices Also Witness Correction

Silver prices also moved lower on Monday.

The domestic silver rate slipped to around ₹2,79,900 per kilogram. Despite the recent correction, silver prices remain substantially higher compared to earlier months.

Earlier this year, silver had even crossed the ₹4 lakh per kilogram mark in India, reflecting strong global demand and supply-related concerns.

International spot silver prices reportedly declined to around $74.30 per ounce amid broader commodity market volatility.

Investors Remain Cautious Amid Global Uncertainty

Market participants say investors are currently balancing multiple factors before making fresh bullion purchases.

Key concerns influencing precious metal prices include:

• Global inflation risks
• Crude oil supply uncertainty
• US dollar strength
• Central bank interest rate outlook
• Geopolitical tensions in West Asia
• Import duty changes in India

Recently, the Indian government increased import duty on gold and silver, which has also contributed to elevated domestic bullion prices.

Analysts believe that if geopolitical tensions intensify or inflation concerns worsen, gold could once again witness strong safe-haven buying.

Should Buyers Purchase Gold Now?

Financial experts suggest that long-term investors should avoid making decisions purely based on short-term price fluctuations.

Gold continues to remain an important hedge against inflation and economic uncertainty. However, experts advise buyers to monitor global developments carefully, especially movements in the dollar index, crude oil prices, and interest rate expectations.

Jewellery buyers may benefit from temporary corrections, while investors are advised to focus on gradual accumulation strategies instead of making aggressive lump-sum purchases during volatile market conditions.

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