Precious metal rates witnessed a noticeable decline in early domestic trade on Thursday. Investors tracking gold and silver prices today will find that both metals traded in the red on the Multi Commodity Exchange (MCX). This recent slump is largely driven by domestic profit booking, occurring right after bullion markets hit recent highs.
Domestic Futures Decline After Recent Surge
Trading sessions opened on a weaker note for Indian bullion markets. The April futures for gold on the MCX slipped considerably during early morning deals. On Wednesday, these contracts had settled at a strong Rs 1,61,145 per 10 grams. However, Thursday morning saw the yellow metal retreat to Rs 1,60,516 per 10 grams as traders rushed to liquidate positions.
Silver mirrored this downward trajectory on the domestic exchange. The white metal contracted sharply from its previous close of Rs 2,68,316 per kilogram. Early trades recorded silver at Rs 2,62,892 per kilogram. This immediate sell-off indicates that investors are cashing in on their recent gains rather than holding positions during uncertain global market hours.
City-Wise Gold and Silver Price Breakdown
Retail markets across the country reflected the cautious sentiment seen on the national exchanges. Despite the dip in futures, physical market rates remain historically elevated. Buyers must account for local taxes, making charges, and jeweller margins, which create slight pricing variations across states.
Spot Rates in Major Indian Cities
In the national capital, 24-carat gold was quoted at Rs 1,60,990 per 10 grams, while the 22-carat variant stood at Rs 1,47,550. Mumbai, Kolkata, Bengaluru, and Hyderabad reported nearly identical figures, with 24-carat gold priced at Rs 1,60,840 per 10 grams. Chennai registered marginally higher rates, retailing 24-carat gold at Rs 1,61,740 per 10 grams.
Silver rates also displayed corresponding weakness in retail hubs. The precious white metal hovered around Rs 2,62,900 per kilogram in Delhi. Similar pricing dynamics were observed across other major metropolitan areas, broadly aligning with the broader futures trends.
Global Market Trends and Volatility
While domestic markets experienced a clear pullback, the international scenario presented a more complex picture. Global precious metals showed modest upward momentum, contrasting heavily with the Indian sell-off. Spot gold rose by 0.3 percent, reaching $5,184.43 an ounce early in the day. This slight recovery follows the metal touching its highest level in over three weeks during previous sessions.
Spot Gains Versus Futures Drop
Spot silver also edged up by 0.1 percent, trading at $89.49 an ounce. This upward nudge came right after the metal achieved a similar three-week peak earlier in the week. The disparity between domestic profit booking and international spot resilience highlights the fractured sentiment among global investors right now.
Interestingly, US gold futures for April delivery slipped by roughly half a percent. This divergence between international spot rates and US futures trade suggests that speculators remain unsure about the immediate short-term direction of global commodities.
Key Factors Driving Precious Metal Markets
Several macroeconomic and geopolitical catalysts are currently steering the trajectory of bullion markets. Traditionally, a weaker US dollar makes precious metals more affordable for buyers holding foreign currencies. While the dollar index did soften recently, the expected surge in domestic gold buying was muted by immediate profit realization.
Dollar Index and Geopolitical Tensions
Market participants are keeping a close watch on international trade developments. The ongoing uncertainty surrounding US tariff policies continues to inject volatility into global supply chains. When trade policies appear unpredictable, investors typically flock to safe-haven assets, which explains the resilient international spot prices.
Furthermore, geopolitical tensions in West Asia, particularly the strained relations between the United States and Iran, are acting as a major market floor. Such geopolitical risks historically prevent bullion prices from crashing during regional sell-offs, as institutional investors maintain baseline holdings to hedge against sudden global conflicts.
Consequently, the coming trading sessions remain crucial for determining the next clear trend. Investors should monitor dollar movements and global trade announcements closely before making substantial portfolio adjustments. According to official market data and available trading details, current volatility is expected to persist through the end of the week.
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