Gold prices opened slightly lower on Thursday as investors awaited key US economic data for cues on Federal Reserve policy. A weaker dollar supported bullion internationally, but caution ahead of macroeconomic updates kept sentiment subdued.
On the Multi Commodity Exchange (MCX), gold for December delivery started the session at Rs. 1,13,391 per 10 grams, down Rs. 256 or 0.22% from the previous close of Rs. 1,13,647. By 9:15 AM, it recovered some losses and was trading at Rs. 1,13,525 per 10 grams, down only Rs. 122.
Silver showed resilience, opening lower by Rs. 1,000 at Rs. 1,33,002 per kg, before rebounding into positive territory. It was last quoted at Rs. 1,34,415 per kg, up Rs. 413 or 0.31%.
In the international market, spot gold held steady at $3,734.04 per ounce, while US gold futures for December were unchanged at $3,765.20 per ounce. The US dollar index slipped 0.1%, making gold cheaper for overseas buyers.
In both Mumbai and Chennai, gold prices continued to soften, mirroring the trend in domestic bullion markets.
In Mumbai, 24-carat gold was priced at Rs. 11,444 per gram, a fall of Rs. 93, while 10 grams of gold stood at Rs. 1,14,440, down by Rs. 930 from the previous day.
The 22-carat variety in the city slipped to Rs. 10,490 per gram, a fall of Rs. 85, with the 10-gram rate easing to Rs. 1,04,900, down by Rs. 850.
Chennai too registered similar declines. The price of 24-carat gold settled at Rs. 11,466 per gram, down Rs. 98 and Rs. 1,14,660 for 10 grams, which is Rs. 980 down from yesterday.
Meanwhile, 22-carat gold in Chennai was quoted at Rs. 10,510 per gram, a drop of Rs. 90, and at Rs. 1,05,100 per 10 grams, down by Rs. 900.
According to analysts, the pullback in bullion is driven by profit booking and cautious remarks from US Fed officials on inflation and the labor market. Central bank purchases and strong ETF inflows continue to offer underlying support.
Geopolitical tensions, particularly around Russia-Ukraine, are also keeping gold’s safe-haven appeal intact.
Also Read: Will Bitcoin Become a Central Bank Asset Like Gold?
Analysts expect gold to trade in a narrow range in the short term. On MCX, support is seen at Rs. 1,13,000-Rs. 1,12,380, while resistance is placed at Rs. 1,14,450-Rs.1,14,900. Silver has support at Rs. 1,33,450 - Rs. 1,32,750 and resistance at Rs. 1,35,850-Rs. 1,36,600.
Overall, traders may expect to see some sideways movement with limited upside until clear signals emerge from global economic data and are received from central bank policy guidance.