Gold prices in India witnessed a notable decline on Monday, 7 January, as investors engaged in profit-taking following strong gains in recent sessions. The precious metal opened lower on the Multi Commodity Exchange (MCX), reflecting a shift in focus from geopolitical tensions to upcoming US economic data.
MCX Gold Price Movement
At the opening bell, the MCX gold futures contract for 24 karats showed a slight increase, touching ₹1,38,450 per 10 grams. However, the momentum quickly reversed. By 12:40 PM, the price had dipped nearly 1%, standing at ₹1,37,940 per 10 grams. This represented a fall of approximately 0.46% from the previous session's close, marking a day of mild correction in the bullion market.
City-Wise Gold Rates See Widespread Decline
The downward trend was mirrored across all major Indian cities, with prices for 24k, 22k, and 18k gold falling uniformly. Local markets adjusted to the dip seen on the national exchange.
Mumbai and Delhi Markets
In the financial capital, Mumbai, the 24 karat gold price was recorded at ₹1,38,260 per 10 grams, a decrease of ₹990 from the day before. The price for 22 karat gold stood at ₹1,26,738, while 18 karat gold was priced at ₹1,03,695.
Delhi's bullion market followed suit, with 24 karat gold trading at ₹1,37,940 per 10 grams, down by a significant ₹1,070. The city's 22 karat gold was available for ₹1,26,445, and 18 karat gold for ₹1,03,455.
Southern and Western Cities
The correction was pronounced in southern India. Chennai saw one of the steepest falls, with 24k gold sliding by ₹1,410 to ₹1,38,700 per 10 grams. Hyderabad and Bengaluru also reported declines of ₹950 and ₹990, respectively, for 24 karat gold.
In the west, Ahmedabad's gold price tumbled by ₹960, with 24 karat gold quoted at ₹1,38,480 per 10 grams. Kolkata in the east reported a drop of ₹990, bringing its 24k gold rate to ₹1,38,080.
Key Market Drivers and Takeaways
The primary reason for today's price drop is attributed to profit booking by investors after the metal's strong performance in recent sessions. Market participants are now looking ahead to key US economic indicators, which can influence the dollar's strength and, consequently, global gold prices.
This episode highlights several important points for investors and consumers:
- Gold prices remain highly sensitive to both global market trends and local demand dynamics.
- Significant price variations exist across different cities due to factors like local taxes and making charges.
- Monitoring economic data releases and currency movements is crucial for anticipating short-term price shifts in the bullion market.
The day's trading underscores the volatile nature of the commodity, where gains can quickly be pared back as traders lock in profits and reassess the broader economic landscape.
