- Gold price on India's MCX fell 0.21% to Rs 1,52,150 per 10 grams on May 11
- Silver price on MCX rose 0.62% to Rs 2,63,554 per kg on the same day
- PM Modi urged Indians to avoid buying gold for one year to ease forex pressure
Gold Price Today: The yellow metal rate dropped on India's MCX on Monday, May 11 after Prime Minister Narendra Modi urged Indians to avoid buying gold.
At 9:04 am on Monday, the MCX gold June futures contract fell 0.21% to Rs 1,52,150 per 10 grams, while the MCX silver May futures rose 0.62% to Rs 2,63,554 per kg.
The latest dip comes after PM Modi on Sunday, May 10 requested people to avoid non-essential gold purchases for one year in order to reduce pressure on foreign exchange outflows. "We have to save foreign exchange by any means," he said at an event in Hyderabad.
Highlighting that the governemnt is trying to protect people from the adverse impact of the Middle East conflict, PM Modi on called for judicious use of fuel, postponement of gold purchases and foreign travel, along with some other measures, to strengthen the economy.
Apart from PM Modi's appeal, gold fell globally after President Donald Trump rejected Iran's latest peace offer to end the 10-week conflict, which has blocked the Strait of Hormuz, raising inflation fears as weekend clashes in the Middle East threatened a fragile ceasefire, Bloimberg reported.
The precious metal traded near $4,698 an ounce, after rising around 2% in the previous week. Peace talks was derailed again after Trump called Iran's latest response to his proposal to end the conflict as “totally unacceptable.” The continued tensions may keep the inflation risk high as well as the expectation for higher interest rates, which weigh on non-yielding bullion.
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