Gold Futures Trade Lower at Rs 1,63,109 per 10 Grams Amid Weaker Spot Demand

Gold prices saw a downward movement in futures trade on Tuesday, dropping by Rs 120 to settle at Rs 1,63,109 per 10 grams. Market participants pointed to a noticeable fall in spot demand as the primary driver behind the correction in domestic commodity markets.

On the Multi Commodity Exchange (MCX), yellow metal contracts designated for October delivery traded lower by Rs 120, reflecting a 0.07 per cent decrease. The trading session recorded a total business turnover of 1,595 lots for the contract.

Market analysts monitoring the precious metals segment attributed the decline to weaker spot demand across major domestic markets, which include urban centers such as Delhi, Mumbai, Kolkata, Bengaluru, and Ahmedabad.

The domestic price movement mirrored global trends. In international markets, gold futures in New York declined by 0.23 per cent, trading at USD 4,641.42 per ounce. The alignment between domestic and international pricing underscores the sensitivity of local commodity prices to global macroeconomic indicators and overseas market movements.

"Fluctuations in commodity markets, such as the recent dip in gold futures due to softer spot demand, reflect the delicate balance between domestic consumption patterns and global pricing trends. For businesses and investors dealing in precious metals, keeping a close watch on both local demand indicators and international market movements remains essential for managing short-term price volatility effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes