Gold and silver prices experienced a notable decline in futures trading on Thursday, as market participants engaged in profit-taking activities at elevated price levels. This downward movement was primarily influenced by a firmer US dollar and a reduction in geopolitical tensions that had previously supported safe-haven demand.
Market Performance on MCX
On the Multi Commodity Exchange (MCX), gold futures for February delivery witnessed a significant drop. The price fell by Rs 1,088, which translates to a decline of 0.71 per cent, settling at Rs 1,51,774 per 10 grams. The trading activity was robust, with a business turnover recorded at 11,996 lots during the session.
Context from Previous Session
In the preceding trading session, gold had surged dramatically, reaching an all-time high of Rs 1,58,475 per 10 grams. This represented an increase of Rs 7,910 or 5.25 per cent. However, the gains were not sustained, and the metal pared back to close at Rs 1,52,862 per 10 grams, marking a decline of 3.54 per cent from the peak.
Expert Analysis on Profit-Booking
Renisha Chainani, Head of Research at Augmont, provided insights into the market dynamics. She explained that the profit-booking in gold and silver prices occurred as geopolitical tensions briefly eased. This shift followed statements from US President Donald Trump, who withdrew his threat of imposing new tariffs on European nations and indicated a softer approach regarding Greenland, mentioning that a 'framework of a future deal' had been agreed upon.
Chainani further noted that Trump's assurance against the use of force contributed to a reduction in immediate safe-haven demand. This development played a crucial role in prompting traders to lock in profits, leading to the price corrections observed in the market.
International Market Trends
In the international arena, Comex gold futures for February delivery also reflected a downward trend. The price slipped by USD 8.76, or 0.18 per cent, to USD 4,828.74 per ounce. This retreat came after the metal had recently hit record highs, indicating a broader pattern of consolidation and profit-taking across global markets.
Gold Prices in Major Indian Cities
Here is a detailed overview of gold prices in key Indian cities as of today, showcasing the impact of the market decline:
- Delhi: 22K gold is priced at Rs 14,160 per gram, down by Rs 270, while 24K gold costs Rs 15,446, lower by Rs 295.
- Mumbai: 22K gold stands at Rs 14,145 per gram, down by Rs 270, and 24K gold is priced at Rs 15,431, lower by Rs 295.
- Hyderabad: 22K gold is at Rs 14,145 per gram, down by Rs 270, with 24K gold costing Rs 15,431, lower by Rs 295.
- Jaipur: 22K gold is priced at Rs 14,160 per gram, down by Rs 270, and 24K gold costs Rs 15,446, lower by Rs 295.
- Bangalore: 22K gold stands at Rs 14,145 per gram, down by Rs 270, while 24K gold is priced at Rs 15,431, lower by Rs 295.
- Chennai: 22K gold is at Rs 14,200 per gram, down by Rs 215, and 24K gold costs Rs 15,491, lower by Rs 235.
- Kolkata: 22K gold is priced at Rs 14,145 per gram, down by Rs 270, with 24K gold sold at Rs 15,431, lower by Rs 295.
- Lucknow: 22K gold stands at Rs 14,160 per gram, down by Rs 270, and 24K gold costs Rs 15,446, lower by Rs 295.
- Patna: 22K gold is at Rs 14,150 per gram, down by Rs 270, while 24K gold is priced at Rs 15,436, lower by Rs 295.
- Ahmedabad: 22K gold stands at Rs 14,150 per gram, down by Rs 270, and 24K gold costs Rs 15,436, lower by Rs 295.
- Bhubaneswar: 22K gold is priced at Rs 14,145 per gram, down by Rs 270, with 24K gold costing Rs 15,431, lower by Rs 295.
The widespread declines across these cities highlight the broader market sentiment, with traders and investors adjusting their positions in response to changing economic and geopolitical factors. This trend underscores the volatility in precious metals markets and the importance of monitoring global developments for future price movements.
