Gold prices on the Multi Commodity Exchange (MCX) witnessed a slight decline during early trading hours on Friday, December 5. The movement came as market participants adopted a cautious stance ahead of a key monetary policy announcement from the Reserve Bank of India (RBI).
Precious Metals Show Mixed Trend
While gold edged lower, silver contracts on the domestic exchange bucked the trend and traded in positive territory. This divergence highlighted the nuanced trading sentiment in the commodities market ahead of a major economic event.
Gold and Silver Price Details
The most active February gold futures contract on MCX was trading 0.14% lower at ₹1,29,892 per 10 grams around 9:10 AM. In contrast, the March silver futures contract was up by 0.74%, quoted at ₹1,79,461 per kilogram at the same time.
Focus on RBI's Monetary Policy Committee
The primary factor influencing trader behaviour was the impending decision from the RBI's Monetary Policy Committee (MPC). Investors and analysts were keenly awaiting the central bank's stance on key interest rates and its assessment of the domestic inflation and growth outlook. Such policy announcements often have a direct impact on the demand for non-yielding assets like gold.
Market experts noted that the precious metal was experiencing a period of consolidation. The slight dip in gold prices could be attributed to profit-booking and position squaring by traders who preferred to reduce risk exposure before the policy announcement.
Market Outlook and Investor Advice
The immediate trajectory for bullion prices is expected to remain closely tied to the RBI's policy tone and subsequent global cues. A hawkish stance from the central bank could potentially weigh on gold, while a dovish outlook might offer support.
It is crucial for investors to note that market conditions can change rapidly. The views and recommendations expressed by individual analysts or broking firms are their own. Readers are strongly advised to consult with certified financial experts before making any investment decisions, as individual circumstances may vary.
This remains a developing story. Please check back for fresh updates and a detailed analysis post the RBI policy announcement.
