Domestic gold prices declined on Thursday, tracking softer global cues and shifting expectations around US monetary policy. According to the latest commodity update, 24-carat gold (99.9% purity) in Delhi fell by ₹400 to ₹1,60,900 per 10 grams, down from ₹1,61,300 in the previous session. The decline reflects cautious sentiment in the bullion market as investors reassess the outlook for US interest rates.
The primary reason behind the fall in gold prices was weakness in international markets. Spot gold overseas traded lower at around $5,062.46 per ounce, indicating subdued demand globally. Precious metals typically react sharply to changes in global cues, especially developments in the US economy and Federal Reserve policy expectations.
Stronger-than-expected US employment data reduced hopes of an immediate rate cut by the US Federal Reserve. When interest rates are expected to remain higher for longer, non-yielding assets such as gold tend to lose appeal. Higher rates increase the opportunity cost of holding bullion, which does not offer interest income. This dampened bullish momentum in gold and contributed to the price correction in domestic markets.
While gold witnessed a noticeable decline, silver prices remained steady in the domestic bullion market. Silver was quoted flat at ₹2,68,500 per kilogram, showing no major change compared to the previous session. Despite global softness and futures market fluctuations, retail silver prices held firm, indicating stable local demand conditions.
In the futures segment, however, both gold and silver experienced some weakness. Gold futures for April expiry on the Multi Commodity Exchange (MCX) slipped to an intraday low of around ₹1,57,700 per 10 grams before stabilising. Similarly, silver futures for March delivery dipped to around ₹2,54,526 per kilogram and closed modestly lower. These movements suggest short-term selling pressure influenced by global developments.
The alignment between domestic and international trends highlights the strong linkage between Indian bullion markets and global commodity movements. When spot gold and silver prices soften overseas, domestic rates usually follow, though currency movements and local demand can sometimes cushion the impact.
Market analysts note that bullion prices are currently being driven more by macroeconomic signals than by physical demand trends. Expectations regarding US inflation data, Federal Reserve commentary, and global economic stability continue to shape short-term direction for precious metals.
Despite the recent dip, gold prices remain elevated compared to historical levels. Silver, although flat domestically on the day, remains sensitive to industrial demand and global risk sentiment. Investors and traders are likely to monitor upcoming US economic data and global market cues for further direction.
In summary, gold prices in Delhi declined ₹400 to ₹1,60,900 per 10 grams due to weak global trends and fading expectations of a near-term US Fed rate cut. Silver prices remained unchanged at ₹2,68,500 per kilogram, even as futures markets reflected mild weakness. The precious metals market continues to respond closely to global developments and interest rate expectations.