Gold prices remained flat at Rs 1,00,920 per 10 grams in the national capital on Monday, showing a consolidative phase driven by mixed geopolitical signals and investor caution.
The stability in gold rates follows a Rs 500 drop registered on Saturday when the yellow metal slipped from Rs 1,01,420 to Rs 1,00,920 per 10 grams. This decline came after bullion markets remained closed on Friday in observance of the country’s 79th Independence Day.
In the local retail market, the price of 99.5 per cent pure gold also remained unchanged, holding steady at Rs 1,00,500 per 10 grams, inclusive of all taxes.
Analysts attribute the current flat trend in gold to the geopolitical situation, especially the ongoing talks between the United States and Russia regarding the Moscow-Kyiv peace process. While the discussions showed a positive tone, no concrete resolution emerged, leaving investors cautious.
“Gold traded flat to volatile as the US-Russia meeting over the weekend did not yield any clear resolution on the Moscow and Kyiv peace process, though the tone of talks was positive. This has kept prices in a consolidative phase, as any breakthrough towards peace could pressure gold lower, while prolonged delays in resolution are likely to keep prices supported,” said Jateen Trivedi, VP Research Analyst, Commodity and Currency at LKP Securities.
Meanwhile, silver prices saw a significant jump, rising by Rs 1,000 to reach Rs 1,15,000 per kilogram in the national market on Monday. This increase comes after silver had settled at Rs 1,14,000 per kilogram during the previous session.
Globally, spot gold recorded a marginal uptick, trading at USD 3,349.29 per ounce in New York. Spot silver also gained 0.35 per cent and was seen trading at USD 38.14 per ounce in international markets.
Investors around the world are keeping a close watch on the upcoming release of the US Federal Reserve’s meeting minutes. The details from the meeting are expected to provide clarity on the central bank’s current stance and future trajectory regarding interest rates.
“Investors are anticipating release of the US Federal Reserve’s meeting minutes, which may provide further context for the decision to maintain interest rates at their current level,” said Renisha Chainani, Head of Research at Augmont.
Market sentiment is currently being shaped by conflicting economic signals. Labour market instability and mixed inflation data are fueling speculation that the Federal Reserve may be nearing a shift in its policy stance. All eyes are now on Federal Reserve Chair Jerome Powell’s scheduled speech at the Jackson Hole Symposium 2025, which could offer critical insight into upcoming monetary policy decisions and their potential impact on the gold market.
“With labour markets trembling, inflation sending conflicting signals, and market pricing in interest rate cuts, Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium 2025, could prove to be a turning point for US monetary policy and gold sentiment,” Chainani added.
In summary, gold remains in a holding pattern amid geopolitical uncertainty and cautious market sentiment, while silver has seen a robust rally fueled by both local and international dynamics.
