Gold Prices Drop on MCX Amid Geopolitical Uncertainty
Gold prices on the Multi Commodity Exchange (MCX) declined on October 5, reflecting broader market trends and geopolitical tensions. December gold futures dropped 0.76% to Rs. 1,49,251 per 10 grams, while December silver futures saw a modest rise of 0.36% to Rs. 2,26,679. Meanwhile, Brent crude futures fell 0.86% to USD 101.4 per barrel, and US West Texas Intermediate (WTI) crude decreased by 1.31% to USD 89.92 per barrel.
Domestic gold prices also experienced a downturn. 24K gold fell by Rs. 577 to Rs. 1,47,499 per 10 grams, and 22K gold declined by Rs. 529 to Rs. 1,35,109. Prices varied by city, with Mumbai and Kolkata at Rs. 1,47,499, Delhi at Rs. 1,49,403, and Chennai at Rs. 1,40,747.
In the US, gold prices edged higher as recent soft economic data reduced expectations of a Federal Reserve rate hike in October. Spot gold rose 0.4% to USD 1,958.17 per ounce, and US gold futures for December delivery increased 0.6% to USD 1,986.40. Other precious metals also saw gains, with spot silver up 1.7% to USD 61.40 per ounce, platinum rising 0.6% to USD 1,708.48, and palladium up 0.6% to USD 1,175.04.
Analysts noted that softer labor market data had tempered expectations of a Fed rate hike, providing some support for gold. However, they cautioned that the broader hiking cycle remained intact. Tim Waterer, Chief Market Analyst at KCM Trade, emphasized the impact of Middle East developments on oil prices and inflation, suggesting that market volatility would persist. HSBC lowered its gold price forecasts for 2026 and 2027, citing expectations of further US rate hikes and higher oil prices, while Goldman Sachs maintained its end-2027 forecast at USD 5,400.