Gold prices slightly mixed sentiment in the major Indian cities, with a modest drop in Mumbai, while Chennai and Delhi noted significant increases.
The movement was followed by a brief pause in the global rally, as investors took profits after the gold reached new highs this week on hopes of by the US Federal Reserve.
Global Market Overview
In the international market, spot gold slipped 0.3% to $4,340.29 per ounce, retreating from its all-time peak of $4,381.21 reached on Monday. Similarly, US gold futures for December delivery edged lower by 0.1% to $4,356.40 per ounce.
Analysts attributed the mild pullback to profit-taking and a reduction in safe-haven demand following the recent surge.
According to Tim Waterer, Chief Market Analyst at KCM Trade, “Any pullbacks on gold will be viewed as buying opportunities while the Fed remains on its rate-cutting trajectory.”
Traders are now awaiting the US CPI data due later this week, which is expected to show a 3.1% year-on-year increase in inflation for September. The report, delayed by the ongoing government shutdown, is likely to shape expectations for another potential rate cut in December.
Domestic Gold Prices
In Mumbai, edged slightly lower. The price of 24-carat gold fell marginally to Rs. 13,068 per gram from Rs. 13,069 a day earlier, while 10 grams traded at Rs. 1,30,680 compared to Rs. 1,30,690 yesterday.
Similarly, 22-carat gold slipped to Rs. 11,979 per gram from Rs. 11,980, with the 10-gram price easing to Rs. 1,19,790 from Rs. 1,19,800.
In Chennai, gold prices increased sharply amid festive demand. The price of 24-carat gold increased to Rs. 13,288 per gram from Rs. 13,004 the previous day, while 10 grams climbed to Rs. 1,32,880 from Rs. 1,30,040.
22-carat gold also increased to Rs. 12,180 per gram from Rs. 11,920, and for 10 grams the price increased from Rs. 1,19,200 to Rs. 1,21,800.
Delhi also saw upward momentum in gold prices. The price of 24-carat gold increased to Rs. 13,292 per gram from Rs. 13,084. The 10-gram price of 24-carat gold increased to Rs. 1,32,920 from Rs. 1,30,840.
The price of 22-carat gold rose to Rs. 12,185 per gram from Rs. 11,995. In terms of 10 grams, the increase was to Rs. 1,21,850 from Rs. 1,19,950.
Outlook
Experts believe that while short-term volatility may persist, the demand for gold in the domestic market is expected to be strong throughout the festive season. Thereby the prices are likely to remain high for the week due to the US Fed’s forecast of continued dovishness and Indian festive buying.