Gold Prices Retreat After Recent Surge; Experts Predict Stabilization

Gold prices have experienced a notable correction following a significant rally earlier this month that saw the precious metal reach record highs. As of Tuesday, December futures for gold were trading at approximately Rs. 1.21 lakh per 10 grams, while silver prices fell to Rs. 1.43 lakh per kilogram on the Multi-Commodity Exchange (MCX). This decline comes as analysts indicate that a pullback was anticipated after gold surged from around Rs. 75,000 to over Rs. 1.30 lakh.

Market Trends in Major Cities

In Mumbai, gold prices have dipped slightly, with 24-carat gold dropping to Rs. 12,246 per gram from Rs. 12,328 the previous day. The price for 10 grams fell to Rs. 1,22,460 from Rs. 1,23,280. Similarly, 22-carat gold saw a decrease, with prices falling to Rs. 11,225 per gram from Rs. 11,300, while the 10-gram price eased to Rs. 1,12,250 from Rs. 1,13,000.

Chennai also reported sharper declines, where the price of 24-carat gold decreased to Rs. 12,328 per gram from Rs. 12,491. The 10-gram price fell to Rs. 1,23,280 from Rs. 1,24,910. For 22-carat gold, the price dropped to Rs. 11,300 per gram from Rs. 11,450, with the 10-gram price declining to Rs. 1,13,000 from Rs. 1,14,500.

In Delhi, the price of 24-carat gold experienced a slight decrease, falling to Rs. 12,342 per gram from Rs. 12,343. The 10-gram price slipped to Rs. 1,23,420 from Rs. 1,23,430. For 22-carat gold, the price was Rs. 11,314 per gram, down from Rs. 11,315, while the 10-gram price fell to Rs. 1,13,140 from Rs. 1,13,150.

Global Market Influences

A range of global factors is contributing to the cautious sentiment surrounding gold. The ongoing US government shutdown, which has now surpassed 27 days, has led analysts to speculate that this could prompt the US Federal Reserve to consider an interest rate cut. Such a move may increase demand for gold as a safe-haven asset. Dr. Renisha Chainani, Head of Research at Augmont Gold, commented, “Despite this sharp decline, the long-term sentiment for gold remains positive. Speculative positioning and expectations of Fed policy easing continue to support the broader uptrend.”

In international markets, spot gold was trading near $3,981.67 per ounce, while US gold futures fell by 0.6% to $3,996.50 per ounce. Other precious metals also faced declines, with silver down 0.3% to $46.74 per ounce and platinum slipping 1.2% to $1,571.85. Renewed optimism regarding a US-China trade deal has dampened the demand for safe-haven assets.

As the market adjusts, many investors are watching closely for signs of stabilization in gold prices, which could signal a resumption of the upward trend after this necessary correction.