Gold prices pulled back slightly on Thursday, September 11, as traders booked profits ahead of the US Consumer Price Index (CPI) inflation data. Although expectations for a Federal Reserve rate cut provide medium-term support, a stronger US dollar and softening spot demand temporarily put pressure on bullion.
On the Multi Commodity Exchange (MCX), gold October futures fell 0.28% to trade at Rs 1,08,681 per 10 grams around 9:00 am. Silver December futures also edged lower by 0.14%, standing at Rs 1,25,000 per kilogram.
Analysts note that after an extended rally in gold, investors are choosing to lock in profits, creating short-term selling pressure.
In retail markets, the price of 24-carat gold rose marginally by Rs 10, reaching Rs 1,10,519 per 10 grams. Silver, on the other hand, slipped by Rs 100 per kilogram to Rs 1,29,900.
The 22-carat gold rate also registered a small increase of Rs 10, with prices at Rs 1,01,310 per 10 grams in most major cities.
Mumbai & Kolkata: 24-carat gold at Rs 1,10,520; 22-carat gold at Rs 1,01,310
Chennai: 24-carat gold at Rs 1,10,720; silver at Rs 1,39,900 per kg
Delhi: 24-carat gold at Rs 1,10,670; 22-carat gold at Rs 1,01,460; silver at Rs 1,29,900 per kg
Internationally, spot gold rose 0.1% to $3,645.04 per ounce in early Thursday trade, extending gains after softer-than-expected US producer price index (PPI) data strengthened the case for a Fed rate cut next week.
On Tuesday, bullion reached a new all-time high of $3,673.95 per ounce, underscoring strong investor demand for safe-haven assets.
Spot silver remained steady at $41.13 per ounce, while platinum advanced 0.5% to $1,392.55 and palladium gained 0.7% to $1,181.56.
Market analysts suggest that gold remains in a bullish long-term trend due to global uncertainties, heightened central bank purchases, and investor positioning ahead of expected US monetary easing. However, these nearly record levels have dampened demand in the physical markets, with some fatigue amongst retail buyers.
Traders will keep a close eye on the release of US CPI data later this week, which will clarify the Fed's policy path. A sharper-than-expected decline in inflation could support calls for deeper rate cuts and also drive another leg of the gold rally; meanwhile, a stronger reading may limit gains in the near term.