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Gold prices eased in early Wednesday trading as investors booked profits ahead of the US Federal Reserve’s much-anticipated monetary policy outcome. On the MCX, October gold futures slipped 0.25% to Rs 1,09,884 per 10 grams, while December silver futures fell 1.08% to Rs 1,27,424 per kg around 9:00 am.
The decline comes as the US dollar strengthened slightly against major currencies, making gold more expensive. The dollar index edged up by 0.10%, weighing on short-term sentiment for the yellow metal.
Markets expect the Fed to announce a 25-basis point rate cut later today, the first in what analysts project could be a series of cuts totaling 75-100 bps.
A softer rate environment usually boosts demand for non-yielding financial instruments such as gold. While gold is pulling back today, it is still up 40% year-to-date, supported by central bank buying, geopolitical risks, and consistent safe-haven flows.
Holdings in the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 979.95 metric tons on Tuesday, reflecting continued institutional appetite.
In Chennai, rates declined noticeably. The 24-carat piece was at Rs 11,204 per gram or Rs 1,12,040 for a 10-gram piece, Rs 11,20,400 for a 100 piece, all losing value from yesterday.
The 22-carat followed a similar path, priced at Rs 10,270 per gram, Rs 1,02,700 for 10 grams, and Rs 10,27,000 for 100 grams. This reflects a softer local demand in the south.
In Mumbai, 24-carat gold inched higher to Rs 11,194 per gram, Rs Rs1,11,940 for 10 grams, and Rs 11,19,400 for 100 grams, all posting marginal day-on-day gains.
The 22-carat also advanced slightly, with rates at Rs 10,261 per gram, Rs 1,02,610 for 10 grams, and Rs 10,26,100 for 100 grams. The modest uptick has been linked to stronger retail buying ahead of the upcoming festive season, which typically boosts jewelry demand in India’s financial capital.
In Delhi, prices mirrored the strength seen in Mumbai. The 24-carat rate was recorded at Rs 11,209 per gram, Rs 1,12,090 for 10 grams, and Rs 11,20,900 for 100 grams, each showing a small rise from yesterday.
The 22-carat variety also edged higher, with gold priced at Rs 10,276 per gram, Rs 1,02,760 for 10 grams, and Rs 10,27,600 for 100 grams.
Also Read: Is Now a Good Time to Buy Gold ETFs?
Traders expect short-term instability in gold due to the upcoming Fed meeting. If the Fed opts for deeper cuts, gold may retest upper resistance levels on the MCX. Domestically, city-wise divergence highlights how local demand and festive buying can offset global pressures. For now, the trend is still generally bullish, and dips can be viewed as accumulation from an investor's perspective.
