Gold prices experienced a notable decline in the futures trade on Monday, easing by Rs 589 to settle at Rs 1,55,306 per 10 grams. This drop of 0.38 per cent was primarily driven by weakness in international markets, as investors navigated a complex landscape of economic indicators and geopolitical tensions.
Market Performance and Key Drivers
On the Multi Commodity Exchange (MCX), gold contracts for April delivery fell in a business turnover of 7,695 lots. The downward trend mirrored global movements, with Comex gold futures for the April contract slipping USD 24.31, or 0.48 per cent, to USD 5,021.99 per ounce in New York.
Jigar Trivedi, Senior Research Analyst at IndusInd Securities, highlighted that gold slipped to trade around USD 5,000 per ounce after rising more than 2 per cent in the previous session. This shift followed weaker-than-expected US Consumer Price Index (CPI) inflation data, which initially boosted the metal but later led to profit-taking and adjustments.
Geopolitical and Economic Factors
Manav Modi, Analyst, Commodities at Motilal Oswal Financial Services Ltd, pointed out that geopolitical risks remain elevated. Reports of Washington deploying the aircraft carrier USS Gerald R Ford to the Middle East amid stalled Iran nuclear talks have lent safe-haven support to gold, though this was offset by other pressures.
Modi added that markets are weighing the potential inflationary impact of renewed tariff threats from US President Donald Trump, along with concerns over the Federal Reserve's future policy path. These factors create a mixed environment for gold, balancing between risk aversion and economic uncertainty.
Physical Demand and Market Conditions
Interestingly, gold is trading at a discount for the first time in nearly a month, even as Chinese demand remains robust. Shanghai warehouse stocks have crossed 100 tonnes, underscoring firm physical buying interest. This divergence between futures pricing and physical demand highlights the nuanced dynamics at play.
Market holidays added to the subdued activity, with US markets closed for President's Day and Chinese markets shut for a week due to the Lunar New Year holidays. Investors are now looking ahead to key data releases, including the upcoming Personal Consumption Expenditures (PCE) price index and the minutes of the Federal Open Market Committee (FOMC) meeting, which are expected to provide further direction.
Gold Prices Across Major Indian Cities
Here is a detailed look at how gold prices fared in various Indian cities on Monday, reflecting the broader decline observed in futures trade.
Delhi
Gold prices in Delhi are Rs 15,659 per gram for 24K, Rs 14,355 per gram for 22K, and Rs 11,748 per gram for 18K gold. Compared to the previous day, 24K gold is down Rs 131, 22K gold has fallen Rs 120, and 18K gold is lower by Rs 98.
Ahmedabad
In Ahmedabad, 24K gold is priced at Rs 15,649 per gram. The 22K rate stands at Rs 14,345, while 18K gold costs Rs 11,738 per gram. Prices of 24K, 22K, and 18K gold have declined by Rs 131, Rs 120, and Rs 98 respectively.
Bangalore
Gold in Bangalore is retailing at Rs 15,644 per gram for 24K. The 22K rate is Rs 14,340 per gram, and 18K gold is priced at Rs 11,733. All three categories have declined, with 24K down Rs 131, 22K down Rs 120, and 18K down Rs 98.
Chennai
In Chennai, 24K gold is trading at Rs 15,753 per gram. The 22K rate is Rs 14,440, while 18K gold stands at Rs 12,350 per gram. Compared to the previous day, 24K gold is down Rs 131, 22K is lower by Rs 120, and 18K has fallen Rs 100.
Hyderabad
Gold prices in Hyderabad are Rs 15,644 per gram for 24K, Rs 14,340 for 22K, and Rs 11,733 for 18K gold. The rates have declined by Rs 131, Rs 120, and Rs 98 respectively.
Jaipur
In Jaipur, 24K gold is priced at Rs 15,644 per gram. The 22K variant costs Rs 14,340, while 18K gold is selling at Rs 11,733 per gram. All categories have registered declines of Rs 131, Rs 120, and Rs 98 respectively.
Mumbai
Gold in Mumbai is priced at Rs 15,644 per gram for 24K. The 22K rate stands at Rs 14,340 per gram, and 18K gold is priced at Rs 11,733. Compared to yesterday, prices are down Rs 131 for 24K, Rs 120 for 22K, and Rs 98 for 18K.
Kolkata
In Kolkata, 24K gold is selling at Rs 15,644 per gram. The 22K rate is Rs 14,340, and 18K gold costs Rs 11,733 per gram. Prices have declined by Rs 131, Rs 120, and Rs 98 respectively.
Kanpur
Gold prices in Kanpur are Rs 15,659 per gram for 24K, Rs 14,355 for 22K, and Rs 11,748 for 18K gold. Compared to the previous day, 24K gold is down Rs 131, 22K gold has fallen Rs 120, and 18K gold is lower by Rs 98.
This comprehensive overview illustrates the widespread impact of global market trends on domestic gold prices, with consistent declines observed across major Indian cities. Investors and consumers alike are advised to monitor upcoming economic data and geopolitical developments for further insights into gold's trajectory.
