Precious metals witnessed a decline in early trading on Tuesday, December 16, as investors opted to book profits. The softer trend was attributed to muted spot demand and an absence of new market catalysts.
Morning Session Sees Price Correction
On the Multi Commodity Exchange (MCX), both gold and silver futures contracts traded in negative territory. The downward movement was noted around 9:10 am during the morning trade session.
Specific Contract Details
MCX gold February futures were trading lower by 0.48 percent. The price was quoted at ₹1,33,492 for every 10 grams at that time.
Similarly, MCX silver March futures saw a sharper decline of 1.64 percent. The contract was priced at ₹1,94,657 per kilogram.
Key Factors Behind the Decline
Market analysts pointed to a couple of primary reasons for the dip in precious metal prices. The lack of fresh triggers failed to provide upward momentum, while physical demand in the spot market remained subdued. This environment encouraged traders to lock in gains from previous sessions, a activity known as profit booking.
This report is developing, and market participants are advised to watch for further updates as the trading day progresses.
