Gold prices tumbled on Monday, with domestic futures falling more than 1% to slip below Rs 1,50,000 per 10 grams as a stronger rupee weighed on prices and investors turned cautious ahead of key US inflation data.
On the Multi Commodity Exchange (MCX), gold futures for December 4, 2026 delivery traded at Rs 1,49,899 per 10 grams as of 04:33 PM IST. It marks around Rs 1,600 decline from the previous close of Rs 1,51,499. Prices moved between Rs 1,49,663 and Rs 1,51,596 during the session, according to the exchange data.
The decline came despite international gold prices retreating by a more modest 0.4%. Spot gold fell to $4,176.86 per ounce, while US gold futures for December delivery slipped to $4,200.90 per ounce.
Jateen Trivedi, Vice President and Research Analyst for Commodity and Currency at LKP Securities, attributed the sharper domestic fall partly to the rupee's appreciation towards 95.75 against the dollar.
Also Read | Gold ETF Inflows Jump 71% MoM To Rs 4,451 Crore In September; More Details Inside
Since gold is internationally priced in dollars, a stronger rupee can make imports cheaper and put additional pressure on domestic prices.
He expects volatility to remain elevated as markets await the US Consumer Price Index (CPI) report scheduled for Wednesday. US Producer Price Index (PPI) and retail sales data are due on Thursday.
The inflation readings could influence expectations for the Federal Reserve's interest-rate decisions. Stronger-than-expected data may strengthen the dollar and push bond yields higher, making non-yielding gold less attractive. Softer inflation, however, could offer support to bullion.
Gold also faced pressure from a firm dollar, which remained near a recent 18-month high amid heightened geopolitical uncertainty. Market participants have reduced expectations of an immediate rate hike but continue to anticipate the possibility of tighter policy later this year.
Also Read | Gold, Silver Set For Range-Bound Week As Rupee Weakness Offers Support: Analysts
Trivedi sees the MCX gold price trading in a range of Rs 1,48,000 to Rs 1,52,000 as investors assess currency movements and incoming US economic data.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.