Gold rate today witnessed a sharp correction in the domestic futures market as traders moved to lock in profits after the recent rally. The fall came amid easing geopolitical tensions and a stronger US dollar, both of which weighed heavily on precious metal prices.
Early Thursday trade saw selling pressure intensify across bullion contracts on the Multi Commodity Exchange (MCX), reflecting a shift in market sentiment after weeks of elevated uncertainty-driven buying.
Market Performance: Gold and Silver See Steep Decline on MCX
Gold rate today declined sharply in the domestic futures market, marking one of the biggest single-session drops in recent weeks.
Key market movements on MCX:
- MCX Gold April futures fell by nearly ₹4,600, a decline of around 3%, to ₹1,48,455 per 10 grams
- MCX Silver March contracts slipped sharply by about ₹24,200, or 9%, settling at ₹2,44,654 per kg
The sharp correction highlighted aggressive profit booking after bullion prices surged to elevated levels during the recent phase of geopolitical uncertainty.
Main News: Easing Geopolitical Risks Dampen Safe-Haven Demand
A major trigger for the drop in gold rate today was the easing of geopolitical tensions on the global front.
Reports indicated that the United States and Iran have agreed to hold talks in Oman on Friday, reducing immediate concerns around regional escalation. According to Reuters, Iran has shown openness to discussions around its nuclear programme, while the US is said to be seeking talks on broader issues beyond nuclear policy.
This development reduced safe-haven demand for gold, prompting traders to unwind long positions built during the earlier phase of heightened global uncertainty.
Global Cues Add Pressure After US–China Engagement
Adding to the negative sentiment, US President Donald Trump confirmed that he had an “excellent” telephonic conversation with Chinese President Xi Jinping. The discussion reportedly covered a wide range of bilateral and global topics, including:
- Trade relations
- Military concerns
- Taiwan
- The Russia–Ukraine conflict
- The situation involving Iran
The positive tone of the engagement further eased investor anxiety, reducing the appeal of gold as a defensive asset.
Dollar Strength Weighs on Gold Prices
The gold rate today also came under pressure due to a rise in the US dollar.
- The dollar index climbed 0.20% to 97.81
A firmer dollar pushed up the cost of gold for overseas buyers, dampening demand and adding to the selling pressure in the bullion market.
Why Profit Booking Accelerated in Gold Today?
The fall in gold rate today reflects a classic market response to changing global cues rather than a data-driven shock.
Key reasons behind the decline:
- Cooling geopolitical risks reduced safe-haven demand
- Stronger US dollar impacted commodity pricing
- Traders booked profits after recent sharp gains in bullion
- Reduced uncertainty encouraged a shift away from defensive assets
This combination led to broad-based selling across both gold and silver contracts on MCX.
Summary: What Moved Gold Rate Today?
Gold rate today declined sharply on MCX as the market reacted to easing global tensions and a firmer dollar. With geopolitical risks showing signs of cooling and investors booking profits, bullion prices saw heavy selling pressure in early trade.
Silver mirrored gold’s weakness, recording an even steeper percentage fall. The move reflects a shift in short-term sentiment rather than any new supply or demand shock, as global developments reduced the need for defensive positioning.
As global cues continue to evolve, bullion prices remain sensitive to geopolitical signals, currency movements, and shifts in risk perception.
Source: Livemint
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