Synopsis:- Precious metals on Indian exchanges dipped in early May 4 trade, with MCX gold futures down 0.15 percent and silver easing 0.08 percent, as hawkish signals from major central banks, a firmer US dollar, and muted risk appetite from geopolitical uncertainty combined to keep bullion near recent lows.
Precious metals came under mild selling pressure on May 4, 2026, with both gold and silver futures on the Multi Commodity Exchange declining modestly in early trade. The move tracked weakness in global spot markets, where a combination of monetary policy caution, dollar strength, and fragile geopolitical sentiment kept buyers on the sidelines.
On the MCX, gold June futures were trading at Rs. 1.51 lakh per 10 grams, down 0.15 percent from the previous close. Silver July futures slipped to Rs. 2.50 lakh per kilogram, shedding 0.08 percent. The declines were modest in absolute terms but came in the context of gold hovering near one-month lows , a trend Manav Modi of Motilal Oswal Financial Services has flagged as reflecting broader macro caution rather than any single catalyst.
Spot gold in international markets was trading around $4,605 per ounce, down roughly 0.2 percent. The pressure stems from a cluster of macro factors moving in the same direction. The US Federal Reserve, the European Central Bank, and the Bank of Japan have each signalled that interest rates may remain elevated for longer than markets had priced in earlier this year.
Since gold yields nothing in holding, a higher-for-longer rate environment reduces its relative attractiveness against interest-bearing assets. A stronger US dollar compounds this effect , dollar appreciation mechanically raises the cost of gold in other currencies and dampens demand from non-US buyers.
Elevated oil prices add a layer of complexity. West Asia tensions and shipping disruptions through the Strait of Hormuz have pushed energy costs higher, fuelling inflation concerns. On one reading, inflation should support gold as a store of value; on another, central banks responding to that inflation with tighter policy take away the rate-cut tailwind that drove much of gold’s earlier rally. The market is currently pricing in the second interpretation.
The US-Iran situation remains the most closely watched geopolitical variable in bullion markets at present. Iran reportedly submitted a revised peace proposal through Pakistan, but the US has publicly flagged dissatisfaction with the terms, keeping resolution prospects uncertain. The absence of a clear de-escalation path is maintaining a baseline of risk premium in oil, which in turn bleeds into commodity market sentiment more broadly. Shipping disruptions linked to the Strait of Hormuz, a critical artery for global energy flows, have added to volatility across both oil and precious metals.
Outlook
Near-term direction for gold and silver will be shaped by incoming macroeconomic data. Market participants are watching PMI readings from major economies and US labour market numbers. both of which carry direct implications for central bank policy paths. A weaker-than-expected jobs print or a softer manufacturing PMI could revive rate-cut expectations and provide a floor for gold. Conversely, data that confirms economic resilience in the US is likely to extend the current pressure on bullion prices.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
