Gold rate today: After hitting lifetime highs this week, gold prices on Wednesday dropped to below Rs 1.09 lakh per 10 grams in domestic futures trading. Investors took profits amidst weakening international markets, whilst prospects of an India-US trade agreement improved.MCX gold futures for October delivery decreased by Rs 203 (0.19 per cent) to Rs 1,08,830 per 10 grams, with 17,442 lots traded on Wednesday. The widely-traded precious metal had reached its highest point of Rs 1,09,840 per 10 grams on Tuesday.The December delivery gold futures also declined by Rs 249 (0.23 per cent) to Rs 1,09,839 per 10 grams across 5,069 lots. The precious metal had briefly crossed Rs 1.10 lakh per 10 grams on Tuesday, marking an unprecedented level before retreating.
Why did gold prices fall?
Commodity experts attributed the price adjustment to profit booking following the recent surge that had pushed gold to record levels. The downward trend in international markets contributed to the overall bearish sentiment affecting the precious metal.Market analysts noted that disappointing US employment figures have sparked worries about the health of the American economy. Trading remained subdued as market participants awaited crucial inflation data later in the week, which could influence the US Federal Reserve’s decisions on interest rates.US President Donald Trump expressed optimism about progress in trade discussions with India on Tuesday, ahead of his planned dialogue with Prime Minister Narendra Modi in upcoming weeks.In response on X, PM Modi stated that India and the United States are “close friends and natural partners” and expressed confidence that trade negotiations would help unlock the “limitless potential” of the bilateral partnership.In international markets, Comex gold futures declined to $3,679.02 per ounce, following its record peak of $3,715.20 per ounce on Tuesday.“Gold prices have soared nearly 40 per cent so far this year, breaching the $3,700 per ounce mark, after registering a 27 per cent surge in 2024,” said Renisha Chainani, Head – Research at Augmont, according to a PTI report.According to Chainani, the continued price increase resulted from accommodative monetary policies by major central banks, US dollar weakness, substantial central bank purchases worldwide, and increased geopolitical and economic uncertainties enhancing the precious metal’s safe-haven status.“Investors will now turn to US producer price inflation data, which is scheduled to released later in the day, and consumer price inflation data on Thursday, which will likely offer stronger indications of the US central bank’s monetary policy path and sentiment for the gold prices in the near-term,” she said.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)
