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After a rally earlier this month that drove gold to record highs, the precious metal is now facing a healthy correction. On Tuesday, gold December futures traded around Rs. 1.21 lakh per 10 grams, while silver prices dropped to Rs. 1.43 lakh per kilogram on the Multi-Commodity Exchange (MCX).
According to Mahendra Luniya, Chairman of Vighnaharta Gold Ltd, this pullback was overdue. “After gold surged from Rs. 75,000 to over Rs. 1.30 lakh, a 10-15% correction was expected. Prices may ease toward Rs. 1.15 lakh per 10 grams before stabilizing,” he noted.
In Mumbai, gold prices edged slightly lower. The price of 24-carat gold fell to Rs. 12,246 per gram from Rs. 12,328 a day earlier, while 10 grams traded at Rs. 1,22,460 compared to Rs. 1,23,280 yesterday.
Similarly, 22-carat gold slipped to Rs. 11,225 per gram from Rs. 11,300, with the 10-gram price easing to Rs. 1,12,250 from Rs. 1,13,000.
In Chennai, gold prices also decreased sharply. The price of 24-carat gold declined to Rs. 12,328 per gram from Rs. 12,491 the previous day, while 10 grams fell to Rs. 1,23,280 from Rs. 1,24,910.
22-carat gold also decreased to Rs. 11,300 per gram from Rs. 11,450, and for 10 grams the price declined to Rs. 1,13,000 to Rs. 1,14,500.
In Delhi, gold prices saw a marginal decline. The price of 24-carat gold declined to Rs. 12,342 per gram from Rs. 12,343, a fall of Rs. 1 from the previous day, while 10 grams fell to Rs. 1,23,420 from Rs. 1,23,430.
22-carat gold also decreased to Rs. 11,314 per gram from Rs. 11,315, and for 10 grams the price declined to Rs. 1,13,140 to Rs. 1,13,150.
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The global market has also turned cautious. The ongoing US government shutdown is now stretching beyond 27 days. Analysts say this could push the US Federal Reserve toward an interest rate cut, which may eventually boost gold demand.
“Despite this sharp decline, the long-term sentiment for gold remains positive,” said Dr. Renisha Chainani, Head of Research at Augmont Gold. “Speculative positioning and expectations of Fed policy easing continue to support the broader uptrend,” she added.
In global markets, spot gold traded near $3,981.67 per ounce, while US gold futures fell 0.6% to $3,996.50 per ounce. Other precious metals also declined, with silver down 0.3% to $46.74 per ounce and platinum slipping 1.2% to $1,571.85, as renewed optimism over a US-China trade deal dented safe-haven demand.
