Gold and Silver Prices Today, May 5: Gold Rises Sharply on MCX, Silver Follows | Check City-Wise Rates

By | May 5, 2025

Gold prices continued their upward trend today, opening higher on the Multi Commodity Exchange (MCX). The gold June 5 futures contract began the day with a gain of ₹612, touching ₹93,249 per 10 grams, compared to Friday’s close of ₹92,637. Silver, too, showed strength in early trade, reflecting broader optimism in the bullion market.

What’s Fueling the Rise in Gold Prices?

A combination of international and domestic factors is pushing gold prices higher. The current global climate—riddled with economic uncertainty, rising geopolitical tensions, and volatile equity markets—has led many investors to turn to safer assets like gold.

With inflation pressures lingering and the US Federal Reserve’s monetary policy still under the spotlight, traders are hedging risks by investing in gold. The recent rally reflects this sentiment, as demand for the precious metal remains strong across both retail and institutional segments.

City-Wise Gold Prices in India (May 5)

Here are the latest gold rates across key cities in India today:

  • Delhi: ₹94,300 per 10 grams (22K), ₹96,900 (24K)
  • Mumbai: ₹94,150 (22K), ₹96,750 (24K)
  • Chennai: ₹94,800 (22K), ₹97,500 (24K)
  • Kolkata: ₹94,200 (22K), ₹96,850 (24K)
  • Bangalore: ₹94,100 (22K), ₹96,700 (24K)
  • Hyderabad: ₹94,100 (22K), ₹96,700 (24K)
  • Ahmedabad: ₹94,250 (22K), ₹96,850 (24K)
  • Pune: ₹94,150 (22K), ₹96,750 (24K)

(Note: Rates may vary depending on the jeweler, purity, and applicable local taxes.)

Silver Prices Climb Alongside Gold

Silver also posted gains this morning. On the MCX, silver for May delivery rose by ₹1,126, trading around ₹1,16,850 per kilogram. With demand from industrial sectors like electronics, electric vehicles, and solar energy continuing to rise, silver is steadily gaining traction among investors.

What’s Driving the Bullish Trend in Precious Metals?

Several key drivers are influencing the recent uptick in gold and silver prices:

1. Global Instability

Rising geopolitical risks—especially in the Middle East and Eastern Europe—are making investors nervous. Gold and silver typically benefit from such uncertain environments, acting as safe-haven assets during times of crisis.

2. Federal Reserve Rate Speculation

Although the US Fed kept interest rates unchanged in its last policy meeting, market speculation about possible rate cuts later this year has sparked fresh interest in non-yielding assets like gold.

3. Dollar Weakness

A dip in the US Dollar Index makes precious metals more attractive to buyers using other currencies, thereby boosting global demand.

4. Inflation Concerns

With inflation still not fully under control in major economies, many are turning to gold and silver as a hedge against declining currency value.

5. Seasonal Domestic Demand

India’s traditional wedding season and festivals like Akshaya Tritiya are keeping the domestic jewelry market active, adding to the overall price momentum.

Should You Buy Gold Now?

With gold prices hovering near record highs, many potential buyers are wondering if this is the right time to invest. Experts suggest approaching it with a long-term perspective. Precious metals are not just commodities; they serve as a reliable store of value and a tool for diversifying investment portfolios.

Rather than investing a lump sum during a price surge, financial advisors often recommend a staggered approach, such as through:

  • Sovereign Gold Bonds (SGBs)
  • Gold Exchange-Traded Funds (ETFs)
  • Digital Gold platforms

These options not only reduce the risks of theft or loss associated with physical gold but also offer easier liquidity and sometimes even interest benefits.

Tips for Buyers and Investors

If you’re planning to buy gold or silver in the coming days, keep the following points in mind:

  • Check daily MCX trends for short-term price changes.
  • Compare prices across cities and jewelers before making a purchase.
  • Look for hallmark certification when buying jewelry to ensure purity and resale value.
  • Monitor global economic indicators—such as inflation, interest rates, and geopolitical news—which often influence bullion prices.
  • Avoid impulse buying during price spikes, and instead, watch for brief corrections for better entry points.

Looking Ahead

Both gold and silver have shown consistent strength in 2025 so far, and this trend is likely to continue if global economic uncertainties persist. The upcoming months may see further movement depending on decisions from central banks, inflation data, and international developments.

For those considering an entry into the precious metals market, staying informed and adopting a disciplined approach can help make the most of this bullish phase.