CHENNAI: Gold prices fell sharply in the domestic futures market on Monday, August 11, as traders booked profits at higher levels amid signs of easing geopolitical tensions. On the Multi Commodity Exchange (MCX), October gold contracts were trading at Rs 1,01,034 per 10 grams in the morning trade, down 0.75% from the previous close. Silver futures also weakened, with September contracts slipping 0.76% to Rs 1,14,004 per kg.
The decline in Indian bullion prices mirrored a drop in global markets, where spot gold fell about 0.7% and US gold futures edged lower. A steady US dollar, fading safe-haven demand, and investor caution ahead of key US inflation data contributed to the weakness.
Analysts say traders are waiting for fresh cues from economic indicators that could shape the US Federal Reserve’s interest rate outlook.
While the near-term trend remains under pressure, market watchers noted that any flare-up in geopolitical risks or weaker-than-expected US inflation could quickly revive demand for gold, pushing prices higher again. Conversely, a stronger dollar or signals of further rate hikes from the Fed could keep bullion under pressure, suggests reports.