Gold and silver prices edged lower in the domestic bullion market on Monday as traders booked profits after recent gains and investors adopted a cautious stance ahead of key global economic developments.
According to market data, the price of 24-carat gold declined by ₹10 to ₹1,57,030 per 10 grams, while silver fell ₹100 to ₹2,79,900 per kilogram. The marginal decline comes after precious metals witnessed strong momentum in recent weeks amid heightened global uncertainty and expectations surrounding interest-rate decisions by major central banks.
Bullion traders said the pullback was largely driven by profit booking at higher levels. However, underlying sentiment for precious metals remains supported by concerns over global economic growth, geopolitical tensions and expectations that central banks may move toward a more accommodative monetary policy stance in the coming months.
In international markets, investors are closely monitoring upcoming US economic data and signals from the US Federal Reserve regarding future interest-rate moves. Any indication of a rate cut could support gold prices, as lower interest rates generally reduce the opportunity cost of holding non-yielding assets such as gold.
Market participants are also tracking movements in the US dollar and bond yields, both of which play a crucial role in determining the direction of precious metal prices. A weaker dollar typically makes gold more attractive for global investors, while rising bond yields can limit gains in bullion.
Jewellers and retailers reported steady demand in the domestic market despite the slight correction in prices. Industry experts noted that physical demand is likely to remain healthy, supported by wedding-season purchases and long-term investment interest among consumers.
It is believed that gold will continue to find support from safe-haven buying amid ongoing geopolitical uncertainties and volatility in global financial markets. Silver, which has both industrial and investment demand, is also expected to remain sensitive to developments in the global economy.
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