Gold falls ₹638 on MCX as Trump rejects Iran peace deal; silver gains
Synopsis
Gold tumbled ₹638 on the MCX as Trump rejected Iran's peace proposal, lifting the dollar and crude. Silver moved in the opposite direction. With the rupee crashing 139 paise and the Strait of Hormuz under fresh scrutiny, India's import bill is under mounting pressure — and PM Modi has already urged citizens to cut non-essential gold purchases for a year.
Key Takeaways
MCX gold hit an intraday low of ₹1,51,892 per 10 grams on 11 May , down ₹638 or 0.41% .
MCX silver touched an intraday high of ₹2,64,922 per kg , rising as much as 1.14% .
COMEX gold fell over 1% to $4,678 per ounce ; COMEX silver was marginally up at $80 per ounce .
The rupee crashed 139 paise to 94.90 against the US dollar in early trade.
PM Modi urged citizens to avoid non-essential gold purchases for one year to ease pressure on foreign exchange reserves.
Iran reportedly sent a peace proposal through Pakistan, but differences over uranium demands kept tensions elevated.
Gold futures on the Multi Commodity Exchange (MCX) tumbled as much as ₹638, or 0.41%, to an intraday low of ₹1,51,892 per 10 grams on Monday, 11 May, as US President Donald Trump reportedly rejected Iran's latest peace proposal, fanning fresh geopolitical tensions and lifting the US dollar. Silver, however, bucked the trend, climbing as much as 1.14% to touch ₹2,64,922 per kg on the MCX.
Gold Under Pressure
MCX gold futures for June 5 opened marginally lower at ₹1,52,487 against the previous close of ₹1,52,530. Selling pressure intensified through the morning session, dragging the metal to an intraday low of ₹1,51,892 around 11 am IST, though the intraday high stood at ₹1,54,434. On the international front, COMEX gold was trading over 1% lower at $4,678 per ounce.
According to commodity market analysts, the decline was driven by a firm dollar and elevated crude oil prices following Trump's rejection of Iran's latest overture on a US-backed peace framework.
Point of View
Elevated crude, a crashing rupee, and now PM Modi appealing to citizens to curb gold imports paint a picture of a current account under serious strain. The government's appeal to avoid non-essential gold purchases is unusual and signals that policymakers are genuinely worried about forex reserve pressure — not just managing optics. If the Strait of Hormuz situation deteriorates further, India's import bill could widen sharply, putting the rupee under additional stress precisely when global risk appetite is contracting.
NationPress
11 Aug 2026
Frequently Asked Questions
Why did gold prices fall on MCX on 11 May?
Gold fell on the MCX because US President Donald Trump reportedly rejected Iran's latest peace proposal, strengthening the US dollar and pushing up crude oil prices, which weighed on gold. The MCX June futures hit an intraday low of ₹1,51,892 per 10 grams, down ₹638 or 0.41%.
Why did silver rise while gold fell?
Silver bucked the gold trend on 11 May, rising as much as 1.14% to an intraday high of ₹2,64,922 per kg on the MCX, likely supported by industrial demand expectations even as geopolitical jitters pressured gold. At the time of reporting, silver was trading at ₹2,62,552, up ₹630 or 0.24%.
What is Iran's peace proposal and why did Trump reject it?
Iran reportedly sent a peace proposal through Pakistan that included ending the conflict, reopening the Strait of Hormuz, and resuming nuclear talks. Trump posted on social media that he reviewed the Iranian response and found it 'unacceptable', with differences persisting over uranium-related demands.
Why did PM Modi urge Indians to avoid buying gold?
PM Modi, addressing a BJP public meeting in Secunderabad on Sunday, urged citizens to avoid non-essential gold purchases for one year to reduce pressure on India's foreign exchange reserves amid the West Asia crisis. Analysts say rising crude oil prices are already expected to widen India's trade deficit.
How much did the rupee fall on 11 May?
The rupee crashed 139 paise to 94.90 against the US dollar in early trade on Monday, 11 May, compounding concerns over India's import bill and current account deficit amid elevated crude oil prices.
