commodity
MCX Gold and Silver See Sharp Swings as Rupee Hits Record Low Against Dollar
MCX Gold, Silver13 hours ago
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Reviewed and Rewrite by
Rudransh Sangwan
Gold and silver prices in India traded at elevated levels on May 8, 2026, supported by geopolitical tensions in West Asia, weaker US dollar trends, and strong domestic demand. Gold continued to attract safe-haven buying, while silver outperformed due to industrial demand from sectors like solar energy, electronics, and AI infrastructure. Chennai reported the highest gold prices among major Indian cities, while southern markets also witnessed premium silver rates.
Gold and silver prices in India remained elevated on May 8, 2026, with both precious metals witnessing steady buying interest amid ongoing geopolitical uncertainty, fluctuating global markets, and strong domestic demand. Gold continues to attract investors as a safe-haven asset, while silver is outperforming due to a combination of industrial demand and investment-led momentum.
Analysts believe the bullion market remains highly sensitive to developments in West Asia, movements in the US dollar index, and expectations surrounding future US Federal Reserve interest rate decisions.
Retail gold prices vary slightly across cities because of local taxes, transportation charges, and regional jewellers’ pricing mechanisms.
| City | 24K Gold Price | 22K Gold Price | 18K Gold Price |
|---|---|---|---|
| Chennai | ₹1,53,840 | ₹1,41,020 | ₹1,17,720 |
| New Delhi | ₹1,53,160 | ₹1,40,410 | ₹1,14,910 |
| Ahmedabad | ₹1,53,060 | ₹1,40,310 | ₹1,14,810 |
| Mumbai | ₹1,53,010 | ₹1,40,260 | ₹1,14,760 |
| Kolkata | ₹1,53,010 | ₹1,40,260 | ₹1,14,760 |
| Bangalore | ₹1,53,010 | ₹1,40,260 | ₹1,14,760 |
| Hyderabad | ₹1,53,010 | ₹1,40,260 | ₹1,14,760 |
| Kerala | ₹1,53,010 | ₹1,40,260 | ₹1,14,760 |
| Pune | ₹1,53,010 | ₹1,40,260 | ₹1,14,760 |
Chennai continues to trade at a premium compared to most other cities due to stronger jewellery demand and regional pricing structures.
Silver prices maintained strong momentum, especially in southern markets where demand remains elevated.
| City | Silver Price (10 Grams) | Silver Price (1 Kg) |
|---|---|---|
| Chennai | ₹2,749 | ₹2,74,900 |
| Hyderabad | ₹2,749 | ₹2,74,900 |
| Kerala | ₹2,749 | ₹2,74,900 |
| New Delhi | ₹2,701 | ₹2,70,100 |
| Mumbai | ₹2,701 | ₹2,70,100 |
| Kolkata | ₹2,701 | ₹2,70,100 |
| Bangalore | ₹2,701 | ₹2,70,100 |
| Ahmedabad | ₹2,701 | ₹2,70,100 |
Silver continues to outperform gold in percentage terms as industrial demand remains robust globally.
The biggest factor supporting gold and silver prices is continued geopolitical uncertainty involving the US-Iran conflict and tensions surrounding the Strait of Hormuz.
Investors globally are increasing allocations toward safe-haven assets to hedge against:
Any escalation in the Middle East immediately strengthens demand for precious metals.
Gold and silver generally move inversely to the US dollar.
A softer dollar index has improved bullion demand globally because metals become cheaper for international buyers using other currencies.
This trend has supported both international and domestic bullion prices.
Investors are closely tracking US inflation and employment data.
Market participants increasingly believe the US Federal Reserve may eventually move toward interest rate cuts if economic growth slows further.
Lower interest rates typically benefit gold and silver because precious metals do not offer fixed yields like bonds or deposits.
Domestic jewellery demand remains resilient ahead of upcoming wedding seasons and regional festivals.
Even when international prices witness corrections, Indian retail demand often helps support domestic bullion prices.
Jewellers across major cities continue to report stable demand despite elevated prices.
Silver has recently shown stronger momentum than gold due to its dual role as:
Silver demand continues to benefit from:
This structural industrial demand is helping silver maintain strong long-term support.
Commodity analysts believe volatility may remain elevated in the near term because bullion prices are currently reacting sharply to geopolitical headlines and macroeconomic data.
Most experts currently recommend:
Analysts also believe that any major diplomatic breakthrough in West Asia could temporarily cool safe-haven demand and trigger short-term corrections in gold and silver.
Long-term investors continue to view gold and silver positively because of:
However, near-term volatility remains high, making disciplined accumulation strategies more suitable than chasing sharp rallies.
Gold prices are elevated mainly because of geopolitical tensions, a weaker US dollar, global safe-haven demand, and strong domestic jewellery buying.
Silver is benefiting from both investment demand and strong industrial usage in sectors like solar energy, electronics, EVs, and AI infrastructure.
Chennai currently has the highest gold prices among major Indian cities due to strong regional demand and local pricing factors.
Future gold prices will depend on geopolitical developments, US Federal Reserve policy decisions, inflation trends, and movements in the US dollar.
Experts suggest gradual accumulation during dips instead of aggressive buying, as volatility remains high in global bullion markets.