In domestic futures trading, MCX gold futures for October delivery experienced a decrease of Rs 203, or 0.19 percent, settling at Rs 1,08,830 per 10 grams. This drop follows a remarkable ascent that saw gold prices hit record highs earlier in the week, specifically reaching Rs 1,09,840 per 10 grams on Tuesday.
On Wednesday, 17,442 lots of the precious metal were traded as investors opted to book profits amid international market fluctuations. The downward pressure on prices can also be traced back to fading optimism in the global market, combined with improved prospects for a trade agreement between India and the United States.
Similarly, gold futures for December delivery fell by Rs 249, or 0.23 percent, settling at Rs 1,09,839 per 10 grams, with 5,069 lots traded. This decline follows a brief period where prices exceeded Rs 1.10 lakh per 10 grams, a milestone that created significant buzz in the commodities market.
Market experts pointed to profit-taking as the primary reason for the price adjustment, especially after the significant rally that had brought gold to its peak levels. Additionally, disappointing employment figures from the U.S. have raised concerns about economic stability, further dampening trading activity as investors await important inflation data later in the week. This data could heavily influence the U.S. Federal Reserve’s forthcoming interest rate decisions.
Amid these changes, U.S. President Donald Trump expressed optimism regarding ongoing trade discussions with India. He is expected to engage in dialogue with Prime Minister Narendra Modi in the coming weeks. In a response posted on social media platform X, PM Modi emphasized the strong partnership between India and the U.S., expressing confidence that trade negotiations would unlock the “limitless potential” of bilateral relations.
In the international arena, Comex gold futures fell to $3,679.02 per ounce, retreating from their recent peak of $3,715.20 per ounce. Renisha Chainani, Head of Research at Augmont, remarked that gold prices have surged nearly 40 percent this year, buoyed by accommodative monetary policies from central banks, a weakening U.S. dollar, and substantial purchases by central banks globally. These factors, coupled with increasing geopolitical and economic uncertainties, are enhancing gold’s status as a safe-haven asset.
Looking ahead, investors are poised to focus on upcoming U.S. producer price inflation data, with consumer price inflation figures expected to follow soon after. These indicators are likely to provide clearer insights into the Federal Reserve’s monetary policy trajectory, which will, in turn, affect the outlook for gold prices in the near term.
