MCX Gold Falls Amid Weaker Global Prices Ahead of US Fed Outlook

Indian gold and silver prices fell on Tuesday, following weaker global prices ahead of the US Federal Reserve's interest-rate outlook. On the Multi Commodity Exchange (MCX), gold futures for October delivery declined ₹544, or 0.35%, to ₹1.55 lakh per 10 grams. Silver futures for December delivery dropped ₹2,535, or 1.04%, to ₹2.41 lakh per kg.

The decline in domestic prices is attributed to weaker spot demand and reduced positions by market participants. Higher US Treasury yields and renewed inflation concerns linked to rising oil prices have also reduced demand for non-yielding precious metals, according to Gaurav Garg, head of research at Lemonn.

Despite elevated prices, physical demand for precious metals remains firm, especially with the upcoming festive and wedding season providing additional support. However, high prices may lead consumers to opt for lightweight jewellery, coins, and smaller-ticket purchases, said Darshan Desai, CEO of Aspect Bullion & Refinery.