Gold Futures Witness Sharp Sell-Off, Prices Tumble Over Rs 8,000
Gold futures experienced a significant decline on Monday, with prices dropping sharply by Rs 8,089 to settle at Rs 1.36 lakh per 10 grams. This downturn reflects a broader global sell-off in the precious metal, primarily driven by mounting inflation concerns and a strengthening US dollar.
Market Performance and Analyst Insights
On the Multi Commodity Exchange, the April contract for gold fell by 5.6 per cent, closing at Rs 1,36,403 per 10 grams. This latest drop adds to the losses from the previous week, where gold had decreased by Rs 13,974, or 8.82 per cent, settling around Rs 1.44 lakh per 10 grams.
Analysts noted that gold started the week on a weak note with a gap-down opening and is likely to remain under pressure for the fourth consecutive week. Aamir Makda commented, "Gold resumed with a gap down on Monday and is likely to continue its downside momentum for the fourth consecutive week amid tensions in West Asia that have stoked inflation fears and rate hike bets in the near future."
Global Market Trends
In global markets, gold futures on the Comex extended their losing streak for the fifth straight session. The April contract declined by $202.4, or 4.42%, to $4,372.5 per ounce. Jigar Trivedi explained, "Gold fell below $4,400 per ounce as the ongoing Middle East conflict intensified inflation fears, while major economies face pressure to boost liquidity, including through gold sales, to offset the war's impact."
Over the past week, overseas gold futures have dropped by $486.8, or 9.6 per cent, settling at $4,574.9 per ounce.
Gold Prices Across Major Indian Cities
Here is a detailed look at gold prices in various Indian cities as of today:
- Mumbai: 24K gold is priced at Rs 14,002 per gram, 22K at Rs 12,835 per gram, and 18K at Rs 10,502 per gram.
- Kolkata: Gold rates stand at Rs 14,002 per gram for 24K, Rs 12,835 for 22K, and Rs 10,502 for 18K.
- Bangalore: 24K gold records Rs 14,002 per gram, with 22K at Rs 12,835 and 18K at Rs 10,502.
- Hyderabad: 24K gold costs Rs 14,002 per gram, while 22K is Rs 12,835 and 18K is Rs 10,502.
- Ahmedabad: Gold rates are Rs 14,007 per gram for 24K, Rs 12,840 for 22K, and Rs 10,507 for 18K.
- Jaipur: 24K gold is reported at Rs 14,017 per gram, alongside Rs 12,850 for 22K and Rs 10,517 for 18K.
- Bhubaneswar: 24K gold is priced at Rs 14,002 per gram, with 22K at Rs 12,835 and 18K at Rs 10,502.
- Kanpur: Gold prices are Rs 14,017 per gram for 24K, Rs 12,850 for 22K, and Rs 10,517 for 18K.
- Delhi: Gold prices show 24K at Rs 14,017 per gram, while 22K is Rs 12,850 and 18K is Rs 10,517.
The ongoing volatility in gold markets underscores the impact of global economic factors and geopolitical tensions on commodity prices, making it a critical area for investors to monitor closely.
