Gold futures declined on Monday, settling at Rs 1,47,310 per 10 grams in the Indian market, as analysts attributed the drop to weaker spot demand. The decline comes amid a broader trend of subdued buying interest from jewellers and retailers.
Market Movement and Analyst Insights
According to market analysts, the fall in gold futures was primarily driven by reduced offtake from domestic consumers. Spot demand remained tepid as high prices continued to deter buyers. The precious metal has been under pressure in recent sessions, with traders adopting a cautious stance.
"Weaker spot demand is the key factor behind the current decline in gold prices," said a senior analyst at a leading commodity brokerage. "Jewellers are not stocking up aggressively, and retail buyers are waiting for further correction."
Global Cues and Domestic Trends
On the global front, gold prices also faced headwinds from a stronger US dollar and rising bond yields, which reduced the appeal of the yellow metal as an investment. However, the domestic market saw a sharper decline due to local demand dynamics.
India is one of the world's largest consumers of gold, and any shift in demand patterns significantly impacts prices. The current weakness in spot demand is expected to persist until the festive season, when buying typically picks up.
Outlook and Investor Sentiment
Analysts remain divided on the near-term outlook for gold. While some expect prices to stabilize around current levels, others foresee further downside if global economic conditions improve and risk appetite returns. Investors are advised to monitor both domestic and international factors before making trading decisions.
Gold futures for delivery in August 2026 on the Multi Commodity Exchange (MCX) closed at Rs 1,47,310 per 10 grams, down from the previous close. The contract had touched an intraday low of Rs 1,47,200 earlier in the session.
