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Gold rate today: Precious metal remained under pressure on Monday, 11 May, after PM Modi urged domestic investors to avoid purchasing gold this year and amid rising crude oil prices and a strengthening dollar.
MCX gold futures for June 2026 delivery fell ₹532, or 0.3%, to ₹1,52,000 per 10 grams on Monday. On the other hand, Gold ETFs like Tata Gold Exchange Traded Fund, Nippon India Gold Bees also fell marginally by less than a per cent on Monday.
Globally, spot gold fell 0.8% to $4,676.02 an ounce, while US gold futures for June delivery dropped 1% to $4,684.50.
Prime Minister Narendra Modi, addressing a rally in Hyderabad on Sunday, urged citizens to avoid buying gold and cut down on foreign travel, among other steps, to help shield the economy from the fallout of the West Asia crisis.
He also stressed the need to conserve foreign exchange reserves and curb fuel consumption amid continued disruptions to global supply chains.
“It is time for us to use petrol, diesel and gas with great care. We must make efforts to use only as much as is needed to save foreign currency and reduce the adverse effects of war crises," Modi said in his speech.
According to Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, PM Modi’s remarks on delaying gold purchases should be viewed primarily from the perspective of India’s macroeconomic stability and import management.
Trivedi further noted that India is one of the world’s largest gold importers, and during periods of elevated crude oil prices and global uncertainty, high gold imports put additional pressure on the country’s trade deficit and the rupee.
Gold imports surged 24% to a record high of $71.98 billion in 2025-26, compared to $58 billion in 2024-25. Imports had stood at $45.54 billion in 2023-24 and $35 billion in 2022-23, commerce ministry data was quoted as saying by PTI.
The increase in imports of these precious metals has widened the country’s trade deficit to $333.2 billion in 2025-26.
Market experts believe that gold ETFs still remain one of the most efficient and investor-friendly ways to invest in gold because of their simplicity, liquidity, transparency, and relatively straightforward taxation framework.
“For investors who do not necessarily require physical delivery, ETFs offer a convenient and low-hassle route to gain exposure to gold, while still retaining the flexibility to convert holdings into physical gold if needed,” said Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital.
He further noted that over the years, the government has consistently discouraged excessive physical gold buying through measures such as import duties and by promoting alternatives like Sovereign Gold Bonds (SGBs), largely because high gold imports impact India’s current account deficit.
“With fresh SGB issuances paused since early 2024, there appears to be a shift in approach. In contrast, Gold ETFs and Electronic Gold Receipts (EGRs) continue to remain policy-friendly, as they help recycle domestic gold instead of driving fresh imports. Notably, the RBI itself has been a significant buyer of gold in recent years,” he added.
Meanwhile, Deveya Gaglani, Senior Research Analyst - Commodities, Axis Direct, believes that gold prices are currently facing pressure amid persistent inflation concerns, as elevated crude oil prices have reduced the appeal of precious metals in the short term.
“In this environment, we expect gold prices to remain in a consolidation phase over the near term. Persistent geopolitical tensions and a high-inflation environment are expected to keep prices range-bound in the near future. On the domestic front, strong support is seen around the ₹1,48,000 level on MCX,” Gaglani said.
He further recommended investors to continue allocating around 10% of their portfolio to gold as a diversification and hedge against global uncertainties, as any correction towards the ₹1,50,000 zone may be viewed as a buying opportunity for long-term investors.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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