Gold, Silver Prices Fall on MCX as Investors Lock in Profits
The price of gold and silver on India's Multi Commodity Exchange (MCX) dipped on August 25, as investors locked in profits after a recent rally. The decline follows a surge in global metal prices triggered by US Treasury bond buyback news. Traders are now turning their attention toward upcoming US inflation data and comments from the Federal Reserve.
The October gold contract on the MCX shed ₹214, trading near ₹1,63,172 per 10 grams. Silver futures for September delivery saw a steeper decline of ₹1,921, trading at approximately ₹2,42,600 per kilogram.
Traders had anticipated this price correction after precious metals reached three-month highs due to the unexpected US Treasury announcement. The buyback news fueled concerns about currency stability and national debt levels, causing prices to rise. However, with prices reaching elevated levels, many traders chose to book profits rather than initiating new positions.