Gold Prices Tumble on MCX Amid Weak Demand and Profit-Taking
Gold and silver prices fell on the Multi Commodity Exchange (MCX) due to weak spot demand and profit-taking. The gold futures for October delivery dropped by ₹437, or 0.28%, to ₹1.54 lakh per 10 grams, while silver futures for September delivery declined by ₹836, or 0.35%, to ₹2.36 lakh per kg.
Analysts attributed the decline in gold prices to weaker spot demand and a sell-off by market participants, which weighed on silver. Gold has remained supported by expectations of a softer US interest-rate environment, driven by several factors including lower yields, weaker US employment data, continued Chinese gold purchases, and a softer US dollar.
According to Anand K Rathi, Co-Founder of MIRA Money, gold has gained around 10-11% in dollar terms over the past month. Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, President of the India Bullion and Jewellers Association (IBJA) and Chairman of Jain International Trade Organisation, sees a move above $4,200-an-ounce level as opening the way towards $4,500 an ounce, with support around $4,350 an ounce.