MCX Gold Holds Steady Despite Duty Shock and Diplomacy

Despite a landmark import-duty increase and hints of US-Iran rapprochement, gold on the Multi Commodity Exchange eked out a 0.19 percent weekly rise. The June futures contract slipped just 0.06 percent on Friday, while May silver futures declined 0.09 percent. IBMA data showed 999-purity gold at Rs 1,58,117 per ten grams, compared with Rs 1,57,821 at the week’s start. Market players traced the muted finish to a firmer rupee and Comex gold stabilising near $4,535. Although news of diplomatic progress cooled some panic buying, worries about the Strait of Hormuz provided a floor. The World Gold Council now sees Indian demand falling 50-60 tonnes in 2026 as the duty rises to fifteen percent, reversing last year’s cut. Higher US Treasury yields—30-year paper above five percent—could further weigh on non-interest-bearing assets. Analysts say the trajectory for gold and silver will depend on the dollar’s path, rupee volatility and any final outcome of Washington-Tehran talks.