Gold prices opened the week on a weaker note, in line with the sentiment among international markets, as reduced tensions between the United States and China weakened demand for safe-haven assets. Investors also became cautious ahead of major central bank meetings, scheduled later this week, which could influence monetary policy direction and global precious metal prices.
On the Multi Commodity Exchange (MCX), gold futures opened lower at Rs. 1,22,500 per 10 grams, down 0.77% from the previous close of Rs. 1,23,451. Gold is trading at Rs. 1,22,363 per 10 grams, marking a decline of Rs. 1,088 or 0.88%.
Silver futures also fell sharply, trading at Rs. 1,46,340 per kilogram, down by Rs. 1,130 or 0.77% from the previous session.
In global markets, spot gold was trading 0.7% lower at $4,082.77 per ounce, while US gold futures for December delivery slipped 1% to $4,095.80. The US dollar strengthened to a two-week high against the yen, making gold more expensive for foreign buyers.
In Mumbai, gold prices saw a decline compared to the previous session. The 24-carat gold was priced at Rs. 12,448 per gram and Rs. 1,24,480 per 10 grams, showing a decrease of Rs. 114 per gram and Rs. 1,140 per 10 grams from the previous day.
Similarly, 22-carat gold in Mumbai was trading at Rs. 11,410 per gram and Rs. 1,14,100 per 10 grams, down by Rs. 105 and Rs. 1,050, respectively.
A similar downtrend was recorded in Chennai. The 24-carat gold rate in Chennai was Rs. 12,491 per gram and Rs. 1,24,910 per 10 grams, a drop of Rs. 54 per gram and Rs. 540 per 10 grams compared to the previous session.
The price of 22-carat gold was Rs. 11,450 per gram and Rs. 1,14,500 for 10 grams, both are down Rs. 50 per gram and Rs. 500 per 10 grams, respectively.
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Gold prices declined as US-China trade talks made progress and removed the safe-haven appeal. But a dovish signal from central banks could lend near-term support for gold prices.
In India, physical gold demand dipped last week as consumers waited for further price adjustments, but lower prices will likely revive additional festive season buying.
With geopolitical tensions easing and keeping monetary policy on track, the short-term outlook for gold remains cautious but resilient amid global economic uncertainty.