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Gold prices show a mixed trend on Thursday as futures rates moved higher on the Multi-Commodity Exchange (MCX), while domestic retail prices for gold saw a slight decline. Investors are eyeing developments surrounding the India-US trade deal and upcoming inflation data for the US, which could influence the sentiment in the global markets.
On the MCX, gold December futures rose 0.89% to Rs. 1,22,938 per 10 grams, while silver December contracts gained 0.93% to Rs. 1,46,915 per kilogram. According to analysts, gold for December delivery is expected to trade within the range of Rs. 1,21,500 to Rs. 1,23,000 per 10 grams.
Internationally, gold prices dipped 0.2% to $4,084.29 per ounce as the US dollar index strengthened 0.2%. US gold futures advanced 0.9% to $4,100.90 per ounce, while silver traded marginally higher at $48.82 per ounce.
In Mumbai, gold prices fell from the previous session. The price for 24-carat gold is Rs. 12,508 per gram, down Rs. 81, and for 10 grams, Rs. 1,25,080, down Rs. 810.
Similarly, the price for 22-carat gold is Rs. 11,465 per gram, down Rs. 75, and for 10 grams, Rs. 1,14,650, down Rs. 750.
The fall in gold prices is attributed to mild profit booking and a stronger Indian rupee, which reduced import costs slightly.
In Chennai, gold prices also edged lower. Currently, the cost of 24-carat gold is Rs. 12,546 per gram, a reduction of Rs. 43, while the price of 10 grams is Rs. 1,25,460, a decline of Rs. 430.
Meanwhile, the price of 22-carat gold is Rs. 11,500 per gram, down Rs. 40, and the price of 10 grams is Rs. 1,15,000, down Rs. 400.
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Gold prices have increased more than 55% this year, driven by global risk, ongoing purchases by central banks, and expected US Federal Reserve interest rate cuts.
However, the attraction of gold as a safe-haven asset has reduced due to positive sentiment regarding a potential trade agreement between India-US and China-US.
Analysts say that gold will continue to be volatile in the near term, but will continue its strong long-term fundamentals
Jigar Trivedi, Senior Research Analyst at Reliance Securities, stated that gold generally gains when interest rates are low because it lowers the opportunity cost of holding non-yielding assets.
With US inflation data due this week and investors pricing in a 25-basis-point rate cut in the upcoming Federal Reserve meeting, gold is expected to stay resilient, supported by festive demand in India and continued geopolitical uncertainty.
