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On Friday, October 3, gold prices in India cooled after five consecutive days of gains, mirroring a mild correction in the global market. Although the domestic gold prices eased, the global bullion stayed firm due to safe-haven demand amid uncertainty in US politics and expectations of Federal Reserve rate cuts later this year.
In Mumbai, 24-carat gold fell by Rs. 65 to Rs. 11,804 per gram, while the 10-gram rate dropped by Rs. 650 to Rs. 1,18,040. A 100-gram purchase now costs Rs. 11,80,400, down by Rs. 6,500 from Thursday.
22-carat gold also weakened, slipping by Rs. 60 to Rs. 10,820 per gram. The 10-gram rate was recorded at Rs. 1,08,200, marking a decline of Rs. 600 compared to the previous session.
Chennai saw steeper corrections. 24-carat gold was priced at Rs. 11,826 per gram, down Rs. 120, with the 10-gram price at Rs. 1,18,260, lower by Rs. 1,200. Bulk buyers faced a sharper dip as 100 grams fell by Rs. 12,000 to Rs. 11,82,600.
For 22-carat gold, the rate declined by Rs. 110 to Rs. 10,840 per gram, while 10 grams dropped to Rs. 1,08,400, a fall of Rs. 1,100 from yesterday’s levels.
On the Multi Commodity Exchange (MCX), gold futures for December delivery traded at Rs. 1,16,960 per 10 grams, down 0.52% during Friday’s session. The decline reflects short-term profit-booking after a sustained rally but remains within a broader bullish trend, given global cues.
In the international trade, spot gold hovered close to record highs of $3,851 an ounce on Friday morning following the all-time peak of $3,896.49 on Thursday. US gold futures rose 0.2% to $3,875.50, indicative of continued demand.
Gold is headed for its seventh consecutive weekly gain, supported by safe-haven flows due to fears that the US government shutdown might go on for weeks and dovish Fed signals. Year to date, bullion is up 47%, making it one of the top-performing assets globally.
Other precious metals saw mixed movement: silver fell 0.4% to $46.79 per ounce, platinum slipped 0.3% to $1,563.86, while palladium advanced slightly more than 0.2% to reach $1,243.41.
Also Read: Gold vs Stocks: Which Should You Choose This Diwali?
Despite the recent correction in Indian markets, gold demand is expected to strengthen as the festive season approaches, with Diwali and Dhanteras driving household and retail purchases. Analysts highlight robust global inflows into gold exchange-traded funds, exceeding $50 billion this year.
Industry experts stated that while short-term volatility is likely, gold prices are expected to remain solid in the medium term, buoyed by festive demand, which will add slightly more upside.
