Gold prices fall: Gold prices fall on profit-booking

Kolkata: Gold prices retreated nearly 3% on Monday after rallying for several sessions, offering relief to buyers preparing for weddings while sellers rejoiced at the return of customers. Prices of the yellow metal fell ₹2,613 per 10 gm to ₹88,401 in the physical market, sparking a demand revival, with jewellers witnessing increased footfalls. On Friday, gold was priced at ₹91,014 per 10 gm. The upcoming wedding season starts April 14 and will continue till July-end.

“Consumers are relieved as prices have fallen, and they want to grab this opportunity. Volume sales are expected to be up 10% this week compared with last week if this price level continues,” said Suvankar Sen, managing director of jewellery firm Senco Gold & Diamonds. “Profit booking in gold has pulled back the price of the precious metal.”

Investors sold gold holdings to offset losses in other investments driven by concerns of a potential global recession due to intensifying trade conflicts. Varghese Alukkas, managing director of South India-based jewellery retail chain Jos Alukkas said: “We are expecting volume to go up 25- 30% this week compared with last week as prices have dropped. There is a strong demand for gold coins of 5 grams and 10 grams.

“Since the equity market is on a southward movement, people are investing in gold in anticipation that prices will go up in the coming days,” he said. “Jewellery demand is also there for the upcoming wedding season. But many are buying bullion so that they can use it for making jewellery, when required.” Analysts said sentiment remains cautious with investors looking for further clarity from the US on its next course of action, especially amid escalating trade tensions.

“The upcoming US Consumer Price Index (CPI) data is expected to play a crucial role in shaping rate cut expectations, which could influence gold’s direction globally,” said Jateen Trivedi, VP Research Analyst Commodity and Currency at LKP Securities. Domestically, the Monetary Policy Committee meeting of the Reserve Bank of India later this week will be closely watched, as rupee volatility is likely to add another layer of uncertainty for gold.

“In this backdrop, gold is expected to remain highly sensitive to both global cues and currency movement, with the short-term trading range likely to stay between `87,000 and `90,000,” Trivedi said