Market Performance
Gold prices opened lower on Wednesday, witnessing sharp profit booking at higher levels, as investors reacted to key geopolitical and financial cues.
- Gold June futures on the MCX dropped by ₹1,883 or 1.45%, opening at ₹95,457 per 10 grams after recently touching an all-time high of ₹99,358.
- Silver May futures also declined by ₹400 or 0.42%, opening at ₹95,478 per kg.
The drop in gold prices comes after a volatile trading session, with the precious metal briefly surpassing $3,500 per troy ounce before falling back due to developments concerning U.S.-China relations and Federal Reserve leadership stability.
Main News
The key driver behind this pullback in gold as an investment was the statement by the U.S. President, indicating stability in relations with China and no changes in Fed leadership. This reassured markets and led to:
- A rebound in U.S. equity markets
- A recovery in the U.S. Dollar Index, which rose to 99.31, gaining 0.40%
These factors prompted traders to book profits in gold, causing prices to retreat from their recent highs.
Gold Price Snapshot Across Major Cities
Here’s a look at gold prices in physical markets for 22K and 24K purity (per 8 grams):
| City | 22 Carat Price | 24 Carat Price |
|---|---|---|
| Delhi | ₹57,176 | ₹60,920 |
| Mumbai | ₹57,952 | ₹61,784 |
| Chennai | ₹56,600 | ₹60,376 |
| Hyderabad | ₹57,120 | ₹60,952 |
These prices reflect minor regional differences but still show that gold as an investment remains a significant interest point for both investors and households.
Company Details
While individual firms weren’t mentioned directly, it’s important to note that MCX (Multi Commodity Exchange) remains the leading platform for trading gold futures contracts in India. This platform plays a crucial role in determining daily opening and settlement prices based on both global and domestic cues.
Summary of the Article
- Gold prices opened ₹1,883 lower on Wednesday, reflecting 1.45% intraday drop
- Profit booking occurred after gold hit an all-time high of ₹99,358
- U.S. President’s remarks on Fed and China influenced market sentiment
- Dollar Index gains added pressure on gold prices
- Silver also saw a modest decline of ₹400 or 0.42%
- Physical market gold rates remain high across metro cities
Stay updated with all the insights.
Navigate news, 1 email day.
Subscribe to Qrius
