Gold rates dropped in New Delhi on Monday, tracking cues in global markets, as offloading by stockists added pressure on the yellow metal.
Gold of 99.9 per cent purity declined by Rs 200 to Rs 1,00,170 per 10 grams.
In the last session, it had settled at Rs 1,00,370 per 10 grams. Gold of 99.5 per cent purity also declined by Rs 150 to Rs 99,900 per 10 grams, inclusive of all taxes. This compares with the last close of Rs 1,00,050 per 10 grams.
Silver, however, remained flat, holding firm at Rs 1,15,000 per kilogram, inclusive of all taxes.
In the global markets, gold prices moved lower in early trading. Spot gold was down 0.26 per cent at USD 3,363.45 per ounce in New York. Silver also slipped slightly, with spot prices easing 0.17 per cent to USD 38.78 per ounce.
Market experts noted that gold is trading with a cautious tone at present. “Gold is trading lower on Monday, and is expected to trade with a positive bias if the US job market weakens, as the interest rate cut odds rise,” said Praveen Singh, Head of Commodities and Currencies at Mirae Asset ShareKhan.
Investors have been closely tracking comments from the US Federal Reserve for further direction. Precious metals saw a rebound last week after dovish remarks from Fed Chair Jerome Powell at the Jackson Hole Symposium. “Last week, gold and silver prices rebounded sharply following dovish comments from US Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium. Powell hinted that the central bank may soon cut interest rates for the first time since December,” said Rahul Kalantri, Vice-President of Commodities at Mehta Equities.
The upcoming meeting of the Federal Open Market Committee (FOMC), scheduled for September 16–17, is expected to provide further clarity on the interest rate path.
While market sentiment has turned supportive after Powell’s remarks, analysts caution that persistent inflation concerns and sluggish global economic activity could limit aggressive rate cuts. “Persistent inflation concerns and sluggish economic activity may prevent aggressive interest rate cuts, capping further upside in precious metals,” Kalantri added.
Alongside Fed signals, investors will also watch for key economic data. “Investors will closely watch the preliminary reading of the US GDP for the second quarter, which is scheduled to release on Thursday. This will provide more insights into the monetary policy stance of the Federal Reserve and the trajectory of the bullion sentiment,” said Renisha Chainani, Head – Research at Augmont.
For buyers, the current dip in domestic prices provides a short-term opportunity to enter the market ahead of the festive season. Gold continues to hold strong long-term fundamentals, supported by expectations of rate cuts in the US, inflationary pressures, and safe-haven demand amid global uncertainty.
With silver steady at elevated levels and gold showing a mild correction, investors and retail buyers may look at this phase as a chance to gradually accumulate. Analysts say any significant weakness in the US economy or dovish monetary stance from the Federal Reserve could drive precious metals higher in the weeks ahead.
