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BusinessGold futures decline marginally but prices hold steady across India

Gold futures decline marginally but prices hold steady across India

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The price of gold witnessed a minor decrease yesterday, according to latest trading figures. Data from leading commodity exchange MCX indicates that gold futures for the June expiry period closed 0.09% lower from the previous day. In line with the futures trend, physical gold prices also declined slightly across major Indian cities.

Analysts attribute the dip to profit booking by traders seeking to pocket gains, after prices had risen significantly in recent weeks. Weaker global cues also played a part, as investors closely track commentary from the US Federal Reserve regarding interest rate outlook. The Fed has signaled a willingness to consider rate cuts should high inflation persist, leaving markets awaiting further cues on the central bank's monetary policy stance.

In the domestic spot market, good quality 22-karat gold was priced at Rs. 6,625 per gram while 24-karat purity gold was sold at Rs. 7,227 per gram, down Rs. 10 from previous levels. Among cities, Mumbai saw 22-karat prices of Rs. 6,625 while 24-karat stood at Rs. 7,227. Traders in Chennai and Ahmedabad also quoted matching rates.

Looking ahead, volatility is expected to remain as market players parse upcoming consumer price inflation data from the US for signs around how aggressively the Fed may tackle rising living costs. Gold is viewed as a hedge against inflation but also competes with interest-bearing assets. A clearer picture on rates could steer precious metal valuations.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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