Decline in Gold Prices in India: Update for May 28, 2025
New Delhi, India – Gold prices experienced a decline on May 28, 2025, according to data compiled by FXStreet. The current market dynamics, influenced by various economic factors, have contributed to this downward shift in gold pricing.
Current Gold Prices
As of May 28, 2025, the price of gold in India stands at 9,075.98 Indian Rupees (INR) per gram. This marks a decrease from the previous day’s price of 9,090.57 INR per gram. Similarly, the price of gold per tola has also fallen, from 106,030.70 INR on May 27 to 105,860.40 INR on the current day. The updated gold prices are as follows:
- Gold Price per Gram: 9,075.98 INR
- Gold Price per 10 Grams: 90,761.20 INR
- Gold Price per Tola: 105,860.40 INR
- Gold Price per Troy Ounce: 282,294.70 INR
The fluctuations in gold prices are largely attributed to international market trends and local currency valuations.
Economic Influences on Gold Prices
Several economic indicators have played a significant role in shaping the current gold prices. A notable factor was the strength of the US Dollar and a positive shift in US Consumer Confidence that surged from 85.7 to 98.0 in May. This increase in consumer confidence has been attributed to the truce on tariffs between the US and China, which has fostered a sense of stability in the market.
The yield on the 10-year US Treasury note remained steady, falling six basis points to 4.446%, while real yields similarly dropped by six basis points, settling at 2.116%. Additionally, concerning economic data such as the disappointing 6.3% decline in US Durable Goods Orders for April has impacted investor sentiment.
Minneapolis Fed President Neel Kashkari emphasized that interest rates should remain unchanged until clearer insights emerge regarding the effects of higher tariffs on price stability.
Future Outlook
Despite the recent dip in prices, experts remain cautiously optimistic about gold’s future. The prevailing market mood suggests a certain fragility in US assets, heightened by a growing fiscal deficit that prompted Moody’s recent downgrade of US government debt from AAA to AA. Furthermore, the data from Reuters revealed a significant increase in China’s net gold imports via Hong Kong, more than doubling in April compared to March, marking the highest import levels since March 2024. Market participants are speculating on potential easing measures, with money markets indicating expectations of 46.5 basis points of easing by year-end, as illustrated by Prime Market Terminal data.
Conclusion
As gold remains a trusted safe-haven asset amid economic fluctuations, its price movements continue to reflect broader market dynamics influenced by both domestic and international factors. Investors are advised to stay abreast of ongoing changes in market conditions, particularly the developments regarding interest rates and geopolitical events, which could further impact gold prices in the coming months.
For additional insights and forecasts related to the gold market, readers can access comprehensive resources, including a PDF guide detailing the 2025 Gold Forecast.
This article is intended for informational purposes only and is not financial advice. Readers are encouraged to conduct thorough research and consider seeking personalized advice from financial advisors.
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