Gold prices stayed under pressure on Thursday as easing geopolitical tensions and a stronger US dollar reduced demand for safe-haven assets. Many investors also booked profits after the recent rally.
On the Multi Commodity Exchange, gold futures for August delivery were trading 0.16% lower at ₹141,220 per 10 grams around 9:13 am. MCX silver futures were also weak, slipping 0.96% to ₹211,710 per kg at the same time.
Retail gold prices across major Indian cities also saw a mild decline. According to market data, 24-carat gold was trading around ₹99,000 per 10 grams in several metros, while 22-carat gold stayed near ₹90,700 per 10 grams. Silver prices too softened, with the metal hovering around ₹1.08 lakh per kilogram in key markets.
The recent cooling in prices comes after a sharp rise earlier this month, when investors rushed to precious metals amid fears of rising tensions in the Middle East. But as geopolitical worries eased and concerns over supply disruptions faded, risk sentiment improved. That pushed some traders back towards equities and other riskier assets.
A stronger US dollar added more pressure on gold. Since the yellow metal is priced globally in dollars, a firmer greenback makes it costlier for buyers using other currencies, which can reduce demand. Market participants are also watching signals from the US Federal Reserve closely, as worries that interest rates may stay higher for longer continue to weigh on bullion.
The weakness was also visible in exchange-traded funds linked to precious metals. Gold and silver ETFs fell as much as 4% in recent sessions, reflecting investor caution and profit booking after months of strong gains. Analysts said the mix of a firm dollar, easing geopolitical stress and uncertainty over future rate cuts has temporarily softened sentiment for precious metals.
Even so, market experts remain positive on gold over the longer term. Ongoing global uncertainty, central bank buying and expectations of eventual monetary easing could continue to support prices. Many investors still see gold as a useful hedge against inflation and wider economic volatility.
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