Gold prices slipped in early Thursday trading as investors reacted to the US Federal Reserve’s latest policy move. On the Multi Commodity Exchange (MCX), October gold futures were down 0.42% at Rs. 1,09,362 per 10 grams, while December silver futures also fell 0.46% to Rs 1,26,403 per kg.
The decline followed the Fed’s decision to cut the federal funds rate by 25 basis points, while also signaling the possibility of two more cuts later this year.
The cautious tone from Fed Chair Jerome Powell raised the US dollar index by 0.20%, making gold pricing for foreign buyers more expensive and weighing on short-term sentiment.
Experts believe the rate cut triggered some profit booking, but the long-term outlook for gold remains positive. Jigar Trivedi of Reliance Securities said supplies of old gold remain tight in India as investors continue to hold bullion, expecting further gains.
Commodity expert Anuj Gupta recommended buying gold only on dips, noting that the overall bullish trend remains intact.
Ajit Mishra of Religare Broking added that the yellow metal continues to draw strength from expectations of looser Fed policy and persistent demand for safe-haven assets.
Manoj Kumar Jain of Prithvifinmart highlighted that MCX gold has support around Rs. 1,09,200-Rs. 1,08,800 and resistance near Rs. 1,10,150-Rs. 1,10,666, with volatility likely in the near term.
In Mumbai, gold prices registered notable declines.
24 Carat: At Rs. 11,117 per gram, down from Rs. 11,171. For 10 grams, the price stands at Rs. 1,11,170, down Rs. 540, while 100 grams costs Rs. 11,11,700, a fall of Rs. 5,400 from yesterday.
22 Carat: At Rs 10,190 per gram, slipping Rs 50. For 10 grams, the price is Rs 1,01,900, down Rs 500, while 100 grams trades at Rs 10,19,000, down Rs 5,000 from the previous session.
Chennai mirrored the weakness with both 24K and 22K prices moving lower.
24 Carat: At Rs. 11,149 per gram, lower by Rs. 55. The 10-gram rate stands at Rs. 1,11,490 down Rs. 550, and 100 grams at Rs. 11,14,900, showing a Rs. 5,500 drop.
22 Carat: At Rs. 10,220 per gram, slipping Rs. 50. The 10-gram cost is Rs. 1,02,200, down by Rs. 500, while 100 grams is priced at Rs. 10,22,000, with a fall of Rs. 5,000.
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Despite the MCX gold futures continuing to be under pressure from a stronger dollar, experts have retained a 'generally bullish' long-term outlook considering geopolitical risks, central bank demand, and expectations for further Federal Reserve easing. For Indian buyers in cities like Chennai and Mumbai, the price has dipped, providing an opportunity to accumulate on dips.