Sharp Decline in Gold Prices, Ideal Time for Buyers
In the international market, gold futures dropped by 0.75% to trade at USD 3,226.02 per ounce in New York. Analysts cite global economic data and improving risk sentiment among investors as the primary reasons for the dip in bullion prices.
New Delhi: Gold prices continued their downward trend on Wednesday, falling by ₹107 to ₹93,540 per 10 grams in the futures market. The dip is attributed to weak global cues and fading investor interest in the precious metal as a safe haven.
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On the Multi Commodity Exchange (MCX), gold contracts for June delivery were trading lower by ₹107 or 0.11%, settling at ₹93,540 per 10 grams. The session saw a business turnover of 12,275 lots.
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Global Gold Prices Also Under Pressure
In the international market, gold futures dropped by 0.75% to trade at USD 3,226.02 per ounce in New York. Analysts cite global economic data and improving risk sentiment among investors as the primary reasons for the dip in bullion prices.
Also Read: Sensex, Nifty Open Lower on Mixed Global Cues
Analysts’ Insights: Reasons Behind the Decline
Market experts attribute the fall in gold prices to:
- Weak global trends and easing inflation concerns
- Profit booking by investors amid high volatility
- Strengthening U.S. dollar and bond yields
- Reduced demand for gold as a safe-haven asset
The combined impact of international pressures and technical corrections has led to the downward movement in both domestic and global markets.
Outlook: What Investors Should Watch
Investors are advised to monitor global economic indicators, especially U.S. inflation data and Federal Reserve policy signals, which could continue to influence gold price movement in the coming weeks.
