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Gold prices fell sharply on Thursday morning as investors shifted their focus towards equities following the announcement of sweeping Goods and Services Tax (GST) reforms. On the Multi Commodity Exchange (MCX), October gold futures slipped 1.21% to Rs 1,05,897 per 10 grams, while December silver futures declined 1.6% to Rs 1,23,871 per kilogram.
Investors closely follow the Gold Price Today to plan their buying and selling decisions. A surge in risk appetite drove the sell-off. Domestic indices the Sensex and Nifty 50 rose nearly 1% in early trade, buoyed by the GST Council’s historic tax cuts.
Chaired by Finance Minister Nirmala Sitharaman, the council introduced a simplified tax structure aimed at stimulating consumption, accelerating growth, and mitigating the impact of US tariffs on Indian exports.
Analysts expect the move could add about one percentage point to India’s GDP growth over the next four to six quarters, prompting investors to rotate into equities at the expense of safe-haven assets, such as gold.
Weak international cues added to the pressure. Gold eased overseas on profit-taking after recent highs. The yellow metal had rallied in recent weeks on expectations of a US Federal Reserve rate cut and dollar stability, but traders booked gains ahead of key macroeconomic data.
The US Labor Department reported job openings fell to 7.181 million in July, reinforcing expectations of monetary easing. CME Group’s FedWatch tool indicates a 97% probability of a 25-basis-point cut at the Fed’s September 17 meeting.
Experts caution against fresh aggressive trades amid volatility. Manoj Kumar Jain of Prithvifinmart Commodity Research advised profit booking in gold and silver after earlier targets were achieved, suggesting traders wait for corrective dips before entering new long positions.
Analysts are evaluating the GST Reforms Impact on jewelry demand and bullion markets. Jain pegged support for international gold at $3,610-$3,580 per ounce and resistance at $3,650-$3,685, while silver support lies at $41.80-$41.35 with resistance at $42.40-$42.85.
Trading activity in MCX Gold Futures reflects market sentiment and global cues. On the MCX, gold support is seen at Rs 1,06,500-Rs 1,05,800 with resistance at Rs 1,08,000-Rs 1,08,850. Silver has support at Rs 1,24,850-Rs 1,23,500 and resistance at Rs 1,27,000-Rs 1,28,500.
Alongside gold, the Silver Price Today also shows volatility driven by global trends. Rahul Kalantri of Mehta Equities projected gold’s INR support at Rs 1,06,340-Rs 1,05,740 and resistance between Rs 1,07,850-Rs 1,08,650. For silver, he placed support near Rs 1,23,050-Rs 1,22,250 with resistance up to Rs 1,25,650.
Also Read: Gold Price Today: Gold surges to Rs 1,06,000 per 10 grams in India amid global uncertainty
With elevated equity sentiment following the GST reforms and profit-taking globally, gold may come under some pressure in the near term. Hopes of a Fed Rate Cut have added momentum to precious metal prices worldwide.
However, expectations for a Fed rate cut later this month may provide a cushion, preventing them from falling further.
